A transition to retirement (TRP) pension allows you to access some of your super while you’re still working and receiving superannuation guarantee (SG) payments from your employer, along with other contributions you may care to make, to your super account. With a TRP in smartMonday PENSION you may:

• Work fewer hours, receive the same income - Cut back your working hours and use your TRP income to make up for your reduced pay.
• Work the same hours, receive more income - Use the additional income from your TRP to cover extras such as those home renovations.
• Save more super, receive the same income - Salary sacrificing some of your pay to grow your super while your TRP helps you replace some/all of our lost income.

You don’t have to retire to have this type of pension, it gives you great flexibility in how you organise your work, play, and income arrangements. It may also be a tax-effective way to continue building your super at the same time.

Anyone can open a TRP account if they have reached their preservation age (irrespective of their employment status).

• Once you’ve reached preservation age you have the option to draw a regular income from your super.
• You can draw down a minimum of 4% up to a maximum of 10% of your TRP account balance as income in any year to help supplement any other income you receive.
• You can continue to make contributions to your super, via your ‘accumulation’ account. In fact, there may be favourable income tax advantages for you in doing so, depending on your age and taxable income.
• TRPs are non-commutable, which means that they generally cannot be cashed out or have lump sums withdrawn.
• If you’re age 60 or over, pension payments from a super fund are tax free and you don’t have to include them in your tax return. If you’re under age 60, any taxable amount of your pension income is taxed at your marginal rate of tax plus the Medicare levy. You may be eligible for a tax offset of up to 15% on any taxable amount.
• Investment earnings on assets in a TRP are taxed at the concessional superannuation rate of up to 15%.
• When you reach age 65 or you notify us that you satisfy a ‘condition of release’ such as permanent retirement or leaving employment after age 60, we will convert your TRP to a retirement pension which will allow you to withdraw lump sums.

Please note: The information above is general in nature and should not be relied upon as personal advice as your personal needs, objectives, and financial situation have not been considered. Before making a decision about any smartMonday branded product you should consider whether it suits your particular circumstances, and, where appropriate, you may wish to seek financial advice specific to your needs. If you do not have a financial adviser, you may contact us to ask about the advice services you can access through your membership.

‘Yeah, lets go!’

If you are ready to start the transition into the weekend, contact your financial adviser.  If you don’t have a financial adviser, a smartMonday smartCoach will help you work out if this is the right thing for you.

‘No, I’m looking for something a little more permanent.’

If that’s how you feel, check out our account-based pension and consider getting your weekend on the road.