Transition to retirement strategy
To save more super without lowering your take-home income in the lead-up to retirement, you might like to consider a transition to retirement strategy.
To be eligible, you must have reached preservation age (when you can access your super) which is at least age 55 depending on your date of birth.
How does this strategy work?
You elect to roll a lump sum amount of your existing super savings into a non-commutable super pension as you continue to work full-time.
The additional income from your super pension enables you to salary sacrifice more before-tax income back into your existing VicSuper account. Thanks to the following tax advantages, you can increase your level of super contributions:
- tax free investment returns from your super pension
- the tax effectiveness of salary sacrifice, and
- tax free pension payments from age 60.
For more information on this strategy, please read the VicSuper Pensions Product Disclosure Statement available from our publications page. To receive a copy free of charge, please request this publication to be sent to you.
As this strategy must be tailored to an individual's circumstances, it's best you speak with a qualified VicSuper superannuation adviser.