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.