Your Path to Retirement: How a Transition Strategy Can Help

For many Australians, retirement doesn’t happen overnight. Instead, it’s a gradual shift – working a little less, enjoying more personal time, and preparing financially for the years ahead. A transition to retirement (TTR) strategy is designed to support exactly that kind of change.

Once you reach your preservation age of 60, a TTR strategy may allow you to access some of your super while you’re still working, helping you smooth the move from full‑time work into retirement.

How a Transition to Retirement Strategy Works

A transition to retirement strategy lets you start a retirement income stream from your super without having to stop work completely. This is done through a transition to retirement income stream (TRIS), which provides regular payments from your super account.

You’ll need to keep some money in your super accumulation account so your employer can continue making compulsory super contributions, along with any extra contributions you choose to make. The income from a TRIS is paid directly into your bank account, giving you added flexibility during this phase of life.

Why People Use a TTR Strategy

A TTR strategy is commonly used in two ways.

Some people use it to reduce their working hours without a large drop in income. By replacing part of their salary with income from super, they can move toward retirement more comfortably while continuing to receive employer super contributions.

Others use a TTR strategy to build their super and manage tax while continuing to work full‑time. By salary sacrificing or making deductible super contributions, they may be able to reduce their personal tax while continuing to grow their retirement savings, depending on their circumstances.

What to Be Aware Of

While a transition to retirement strategy can be helpful, it’s not a one‑size‑fits‑all solution. There are limits on how much you can withdraw each year, and access to lump sums is usually restricted while you’re still working. Starting to draw on super early can also reduce the amount available in full retirement if the strategy isn’t managed carefully.

A TTR approach may also affect government benefits and insurance held through super, so these factors need to be considered before getting started.

Final Thoughts

A transition to retirement strategy recognises that retirement is a journey, not a deadline. When used appropriately, it can provide flexibility, lifestyle balance, and confidence during the years leading up to full retirement.

Because of the complexity and long‑term impact on your financial future, professional financial advice is essential to ensure a transition to retirement strategy is structured correctly and aligned with your goals.

How Can We Assist You Today?

A transition to retirement strategy can offer valuable flexibility, but it also comes with long‑term financial and tax considerations that need to be carefully managed. At Blue Financial Ballarat, we help individuals assess whether a TTR strategy is appropriate for their circumstances and ensure it’s structured to support both their lifestyle goals and future retirement security. With a trusted reputation and a long‑standing presence in Ballarat, we’re committed to providing tailored advice that brings clarity and confidence as you move toward retirement. Partner with us to navigate your transition to retirement with certainty and peace of mind.

Let us help you reach your financial goals today!

General Advice Warning: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.