Transition to Retirement facility
You can now get access to your super while still working. This facility, called Transition to Retirement, is available through the Cbus Super Income Stream to members who have reached their Preservation Age.
Will Transition to Retirement work for me?
The 'Transition to Retirement' facility can provide the lifestyle flexibility you need to enjoy working for a longer period, while supplementing your income from your super.
Starting a Cbus Super Income Stream, under the 'Transition to Retirement' facility can:
- reduce your current and future tax burdens;
- help fund salary sacrifice super contributions from present wage income.
In addition, once you start a Cbus Super Income Stream, the income earned in the fund is not subject to the 15 per cent super fund tax rate, which would apply if your money was still invested in a ‘normal' superannuation fund. The ability to successfully take advantage of the new Transition to Retirement rules will vary from person to person according to individual circumstances. Working out if the facility will work financially for you can be complex.
We recommend that you seek professional advice to help you with this decision.
Whilst you are in the 'Transition to Retirement' facility you can't commute an income stream into a lump-sum payout until you satisfy a condition of release and you can only take a maximum of 10% of your account balance each year.
What happens when I permanently retire?
Once you permanently retire, or reach age 65, the Transition to Retirement facility will revert to a normal income stream, which means that you will have access to the more flexible lump sum payment rules applicable to Superannuation Income Streams.
For more information about the 'Transition to Retirement' facility available through the Cbus Super Income Stream, please call Cbus on 1300 368 212 or download the Cbus Super Income Stream Product Disclosure Statement.
