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Transition to retirement

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Dissed, 4th Sep, 2009.

  1. Dissed

    Dissed Active Member

    28th Aug, 2008
    Sydney, NSW
    My wife and I are both 55. I am a contractor but am getting limited contracts. We attended two seminars on TTR and came back confused. It is not that we are specially dumb. Check for yourself, google Transition to Retirement calculators and you will find even numbers not tallying - simple numbers on tax payable. Here are some sites:
    First State Super: Calculators - Superannuation Calculator - Retirement - First State Super
    Clearview: Transition to retirement calculator - ClearView Retirement Solutions
    Australian Super Pension: Transition to Retirement calculator (TTR)- AustralianSuper Pension

    Our objective is to evaluate if TTR will allow us to improve our super balance without impacting our current lifestyle.

    Any views/suggestions please, thanks in advance.
  2. AsxBroker

    AsxBroker Well-Known Member

    8th Sep, 2007
    Sydney, NSW
    Hi Dissed,

    I posted some useful information about transition to retirement a while ago.

    No your not dumb, those calculators are ridiculous and they expect that you actually know what you are trying to do before the figures in. Working backwards is fine if you know what your doing but if you don't know what your doing it makes it very hard.

    For any allocated pension payments for anyone under age 60, the pension payments are split between taxable and non-taxable components. This basically depends on how much (as a percentage) of the balance is SGC and salary sacrifice (taxable) vs remaining contributions which have been made after tax, eg, undeducted contributions, government co-contributions (non-taxable).

    Taxable components for under 60s on allocated pensions are taxed at their marginal tax rate and come with a 15% tax rebate.

    Non-taxable components for under 60s on allocated pensions are tax-free.

    From age 60, taxable components are paid tax-free to their owner.

    Hope this helps.


    PS This is general information, before making an investment, superannuation, allocated pension or annuity decision speak to your FPA registered Financial Planner.