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- Innovative strategies, traditionally reserved for the world's largest investors
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TRANSITION TO RETIREMENT
Benefits of a transition to
retirement strategy
See how Bob, 55, maintains his take home pay and boosts his super balance without exceeding contribution limits.
Bob is 55 and his current salary is $150,000. He wants to implement a transition-to-retirement strategy to maintain his take home pay and boost his super balance, without exceeding his concessional (before tax) contribution limit, which is $50,000.
His employer contributes $13,500 per year to his super, so he chooses to salary sacrifice $36,500, bringing the total amount to the maximum $50,000**. In combination with this salary sacrifice, he withdraws $29,343 from his pension account.
Using this strategy, Bob can maintain the same take home pay and create a net addition of $1,682 to his super, while remaining within his concessional contribution limit.
* Including Medicare levy
** Assumes no additional sources of concessional contributions such as employer contributions towards insurance premiums and fees.
***Assumes no tax-free portion and includes Medicare levy