Pages

Tuesday 26 July 2016

Transition to retirement

Since I was born after 1960, I can't take full advantage of the transition to retirement scheme currently on offer. 


From age 55 a soon to be retiree is allowed to decrease their full-time work obligations and begin drawing down on their retirement fund and then re-contribute to superannuation for a taxation benefit. 

In my age cohort, we have to wait until age 60 to transition to retirement. At that age, you can just retire, use your retirement benefits up until age 67 and apply for the age pension, why not just do that?

That assumes the federal government doesn't bugger around with superannuation any further, we know the government loves to routinely interfere in such a long-term scheme vitally important for the retirement incomes of working Australians. 

Whilst this isn't a strategy I would currently be seeking, the purpose of transition to retirement is to keep experienced workers gainfully employed drawing on their vast experience whilst not draining the pension system. 

The federal government has over spent and is now looking for areas to tax so they can improve their accounts, how about leaving the retirement accounts alone of the people who actually planned and saved for their retirement to remove the burden from the taxpayer. 

No comments:

Post a Comment