“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?