Transition To Retirement: Is Your Smsf All Set For This?

Although the advised period of retirement is 65 years of age

, still lots of people over the age of 65 continue to be working - either full-time or part-time. Simultaneously, there are lots of people under 65 who would like to transition to retirement early, because they have saved enough in their retirement fund.

The question is, how should we best prepare for this transition to retirement? Is it possible to access our superannuation savings even though we're still working? What are steps that any of us can take in order to continue working yet still access our superannuation benefits?

To be able to answer these questions, we must first learn about transition to retirement. Transition to retirement is a program that allows those who have reached their retirement age, to keep working and at the same time reap the benefits from their superannuation fund. To enable them to access their benefits they have to draft their non-commutable superannuation income streams. This is called transition to retirement streams.

There are rules to adhere to relating to your transition to retirement. These are the following:

You are allowed to shorten your working hours yet maintain your income. This can be done by adding together your income from your part-time job together with your income stream from the benefits from your superannuation fund.

In transition to retirement, you can either withdraw money from your super fund in a lump sum, or via a steady stream of income.

Taxes still apply to your retirement income streams when you are less than 60 years old. The typical tax rate is 15 %. Your revenue from your part-time job will also be taxed at the marginal tax rate. Once you are 60 years or older, no tax will be charged to your superannuation income stream.

Not all super fund services offer a non-commutable income stream. This is because it's optional for superannuation funds to offer this to their members. However, if you're convinced that transition to retirement is the best choice for you, you can move your super fund from one service to another. Many people also elect to manage their super fund themselves. This is called self-managed super fund (or SMSF). However, you may need a professional to assist you in accomplishing this step.

Before deciding if transition to retirement is going to be good for both you and your circumstance, it is best that you consult a professional independent SMSF auditor. Experts are knowledgeable and therefore are mindful of the ever-changing rules and regulations that pertain to transition to retirement. You may choose to ask financial planners, lawyers, auditors, or accountants that specialize in superannuation.

Please be aware that every numbers in this article were accurate at the time of writing but might have changed in the meantime and must be verified independently.

by: David Saul

POST COMMENT

The Spyglasses Will Be The After Prototype For Tera Gold Ibm Thinkpad X60 A Free Easy Resume Builder Is Going To Help You Write A Great Resume In Minutes Highlight Your Glamour In White Cocktail Dresses My Notifier- Anger Steps To Create Sugar Cane Waste Material Into Pellet In Brazil Blog Content Ways To Attract People To Your Blog Learn German Words Through The Easiest Way Grammar In German Settore: Retroilluminazione A Led Ancora L'accelerazione Principale Lose Weight To Help Me Diet Sigaretta Elettronica Faq Qu Da De La Moda Cuando Te Pones Vestidos De Noche Hermosa