The pension payment more over 60s need to take advantage of before it’s gone 39



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Did you know there’s a payment you could be eligible for that you may not be receiving? It could be scrapped if it isn’t put to good use soon, say political analysts.

If you’re not yet retired, you may have heard of the transition to retirement pension, which is designed to help those who are looking to retire by supplementing income so that they can reduce work hours.

Introduced in 2005 by former Treasurer Peter Costello, the Tax Office incentive is open to those who are of the age where they can access their super aka the preservation age, which is around 55-60 depending on when you were born.

Once you have reached your preservation age you can choose to receive a type of income stream called a transition to retirement income stream.

According to the ATO, a transition to retirement income stream enables you to receive regular payments (an income stream) from your super while you continue working. Each financial year you can access up to 10 per cent of the money that was in your super account at the start of the financial year.

And when you turn 60, any pension payments or lump sum withdrawals are tax free.

The only bad news is that the payments could be on the way out as it is predominantly being used by wealthy Australians to minimise their tax, says the AFR.

“The tax concessions embodied in transition to retirement pensions – designed to ease workers to part-time work prior to retirement – appear to be used almost exclusively by people working full-time and as a means to reduce tax liabilities among wealthier Australians. A better understanding of how these incentives are being used and by whom could potentially improve the efficacy and sustainability of the retirement income system,” the Productivity Commission said in its Superannuation Policy for Post Retirement report.

Only around 20 per cent of those eligible for the pension are actually using it, so it may be worth looking into with your financial adviser if you are still working.

Tell us, will you use this payment if you can? Or are you already?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. Thanks to our financial planner we have been using this. Sadly many people don’t use planners so they have no knowledge of this.

  2. Thanks to our financial planner we have been using this. Sadly many people don’t use planners so they have no knowledge of this.

  3. Financial planners ! Income streams ! Retirement superannuation income ! Disneyland dreams for many older solo women who have worked hard all their lives . The Australian economy doesn’t help them very much .!

    1 REPLY
    • Marie, you have access to it just like everyone else – provided you meet the age test. Does not matter what your balance – could be as little as $ 10k – you could still get $1,000 per year to supplement your income. Amount received added to your taxable income up to age 60 – once you reach age 60 converted to tax free account balanced pension. Win win situation.

  4. I heard the Treasurer on the radio say they’re looking into this, so hurry up and get into it if you’re thinking about it:)

  5. Thanks to my tax accountant I did this, this time last year as I was retirement age still working 72 hour’s night shift a fortnight. I have been able to drop to 56 hours and the balance is made up by Centre link. I get my benefits. Have just been off for

  6. Have been using this for last three years my super company actually told me about it and set it all up for me while I was still working now retired it still in place

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