Retirement Planning & Experiences

[Quickstatus]

TTR

Does not require change of employment to access. TTR is for people who are still actively working.

Stopping work condition of release is different.
When you are in TTR or even if you don't have TTR but you are over 60, a declaration of stopping work tells the super fund you are retiring and converts your TTR to a pension :
The funds are converted from accumulation to pension account, the 10% limit and the no lump sum is removed.

 

[Happy Dude]

Does not require change of employment to access. TTR is for people who are still actively working.

Stopping work condition of release is different.
When you are in TTR and hit 65, a declaration of stopping work tells the super fund you are retiring and converts your TTR to a pension :
The funds are converted from accumulation to pension account, the 10% limit and the no lump sum is removed.

Still confused. TTR from 60yo requires a condition of release to access super. I thought one of the conditions was a change of employment?

 

[hydrabyss]

Still confused. TTR from 60yo requires a condition of release to access super. I thought one of the conditions was a change of employment?

It looks like a good idea to reduce your tax depending on the bracket your in.

Transition to retirement - Moneysmart.gov.au

 

[Quickstatus]

TTR from 60yo requires a condition of release to access supe

The only requirements to access TTR are
Age 60
Whether working full time or not is irrelevant
Move minimum $10000 into TTR income account - this remains invested just like your super accumulation account
Maintaining a super accumulation account

However, if you reached age 60 and are no longer working for your employer or not working at all, you can access your super if you declare you have stopped working - as stopping working is a condition of release. This dies not stop you from working again some time in the future.

When you reach age 65 you can access all of your super whether you are working or not.

 

[Seat0B]

https://www.ato.gov.au/tax-and-super-professionals/for-superannuation-professionals/apra-regulated-funds/paying-benefits/releasing-benefits/conditions-of-release

@Happy Dude you would be using the conditoion of release "has reached their preservation age and begins a transition-to-retirement income stream"

 

[drcam]

If you are working in your own business (self-employed) and making your own contributions, and hoping to do a planned reduction in hours/workload rather than sudden full retirement, do any of the TTR rules still have any effect on your finances?

 

[Happy Dude]

Ah, understood. Ta. One doesn't have to stop or change work when starting TTR.

 

[Seat0B]

If you are working in your own business (self-employed) and making your own contributions, and hoping to do a planned reduction in hours/workload rather than sudden full retirement, do any of the TTR rules still have any effect on your finances?

yes you can still use TTR if you have an SMSF. If you use an industry fund or commercial fund, it makes no difference as to who makes the contributions or the basis of your employment - all you have to do is meet a condition for release which for TTRs is usually:

"has reached their preservation age and begins a transition-to-retirement income stream"

Preservation age for you youngsters is 60 years old.

 

[Drakecula]

The key thing is to start thinking about how you and MrD would like to retire now, and build your planning around that. You'll be surprised how quickly it comes around.

We've got some ideas, the key one being we want to drop to part time before we retire fully. We're monitoring the finances and as the mortgage gets more under control and there's opportunity to drop a day out of our week, we will. But that's still a good while away just yet.

 

[kookaburra75]

We've got some ideas, the key one being we want to drop to part time before we retire fully. We're monitoring the finances and as the mortgage gets more under control and there's opportunity to drop a day out of our week, we will. But that's still a good while away just yet.

That's good planning. For a while I worked on four days a week, and really enjoyed it. Another thing I did was buying an additional two weeks' of leave per year. As it comes out pre-tax, the impact on my take home pay was only 2%, but I got six weeks' leave per year to really enjoy things - like working out where to do post-retirement travel to.

 

[Happy Dude]

@kookaburra75 My company offers only two weeks annual leave to purchase too but it seems four is becoming more common. And you can't purchase any if you have more than 30 days annual leave, which is my situation.

I'm thinking that retiring without a leave balance is preferable to saving leave, stop working and retiring officially when the leave runs out.

 

[Quickstatus]

One doesn't have to stop or change work when starting TTR.

Stop work/condition of release only applies when you want to access to 100% of your super prior to age 65

 

[Noah Count]

I forgot about this thread but that bell thing gave me an indication new things have been posted. I have entered early retirement by choice i.e not medical or other reasons. The only thing my +1 mentioned was it looks like we will be burning your points to travel J or F if we need or want to travel over the next 3 years and that's if we need to have to travel at all. Come 3 years I will get full access to my super, at one stage my plan was to retire at 50-55 but the Government changed the access rules to 60 so 50-55 went out the window. My dad retired at 35 and then when back to work on his terms for 20+ years so I guess the apple hasn't fallen to far from the tree but the apple is a little older.

The comment above about dying rich I have run our numbers and even if we both live to 100+, MissN should be comfortable for life if she does not go nuts and a spending spree. I said to my +1 I think post 60 I may go skiing her answer was 'why we don't go skiing much these days and we have already skied in NZ, Japan, Canada, US and EU' and followed up with 'when you reach 60 are you really going to drag your boots and kit around the world'. I clarified by stating when I say ski it means 'Spending the Kids Inheritance'

In all seriousness I have now been retired for around 4-5 weeks, and may soon become semi retired as I am just getting board and like the idea of going back to work but only on my terms and to interact with others.

 

[Drakecula]

That's good planning. For a while I worked on four days a week, and really enjoyed it. Another thing I did was buying an additional two weeks' of leave per year. As it comes out pre-tax, the impact on my take home pay was only 2%, but I got six weeks' leave per year to really enjoy things - like working out where to do post-retirement travel to.

I like this plan. I'm currently in an area where taking leave is tricky because it's quite full on. I mean, I have never had leave knocked back, but I'm conscious of peak times. I am hoping I can take some long service leave next year once my current project delivers. At least two months is my goal.

But buying leave to have a more chill year sounds glorious. I just have to deal with my anxiety and guilt due to being the lead and wanting to make sure everyone else is looked after first. But I'm an overthinker, there's probably nothing to worry about... Haha.

 

[VPS]

I like this plan. I'm currently in an area where taking leave is tricky because it's quite full on. I mean, I have never had leave knocked back, but I'm conscious of peak times. I am hoping I can take some long service leave next year once my current project delivers. At least two months is my goal.

But buying leave to have a more chill year sounds glorious. I just have to deal with my anxiety and guilt due to being the lead and wanting to make sure everyone else is looked after first. But I'm an overthinker, there's probably nothing to worry about... Haha.

Don't overthink it.

One of my health providers had cancer and while she was having chemo she had six months off because she couldn't just cancel 7 patients on the morning. Chatting to her the other day she realised that you need to look after yourself and not worry about others depending on you

 

[aspro2]

I don't think it has been mentioned anywhere, so hopefully this is a useful addition (and I'd love someone with more knowledge to add a solution or correct me if I'm wrong...):

If you are wanting to convert to pension phase once you have reached 60, but without doing TTR, you only need to cease one form of employment (and can keep other employment or then take a new job, even with the same employer, without it voiding your official retired status).

However, if you are self-employed, I believe this is almost impossible, as the super fund will need proof of cessation of employment. As far as I can see (please correct me) the only proof is probably the voluntary cancellation of your ABN (and perhaps evidence that there's no website or whatever for the business anymore). But that then hampers you from resuming your work easily if you regret the change (or are trying to game the "retired" status to access super, as is readily done by employees (previous paragraph)).

 

[Pushka]

However, if you are self-employed, I believe this is almost impossible, as the super fund will need proof of cessation of employment. As far as I can see (please correct me) the only proof is probably the voluntary cancellation of your ABN (and perhaps evidence that there's no website or whatever for the business anymore). But that then hampers you from resuming your work easily if you regret the change (or are trying to game the "retired" status to access super, as is readily done by employees (previous paragraph)).

Which is where an SMSF comes in handy.

 

[aspro2]

Which is where an SMSF comes in handy.

Good point! But for those who don't have the wherewithal for SMSFs...