Policy changes add to TTS appeal
Government policy changes make a transition to retirement strategy (TTS) “worth considering” if you are over 55 years of age, still working, and looking to reduce tax and grow super, according to Clearview Retirement Solutions technical manager Dante De Gori.
Government policy now allows you to stay in the workforce either full-time or to cut your hours to part-time while assessing your super through a pension to supplement your income, De Gori said.
In a paper, ‘Transition to Retirement’, presented at the Financial Planning Conference 2008 national Conference last week, he said the strategy involves increasing the amount a person puts into super via salary sacrifice.
“You then top-up your reduced pay by drawing an income from your accumulated super.
“Because of super tax concessions, the amount you need to draw down to top up your pay is generally less than the extra amount your are contributing into super,” he said.
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