Transition to retirement

Access your super while you’re still working

If you’re eligible, you could use a transition to retirement strategy to access your super as an income stream while you’re still working.

The image shows the difference a transition to retirement strategy could have on the tax you pay, your super contribution, and your take home pay. Without a transition to retirement strategy, the tax you pay could be more; your super contributions would consist of employer contributions only; and your take home pay would be made up of employer pay only. With a transition to retirement strategy, the tax you pay could be less; your super contributions would consist of employer contributions and salary sacrifice contributions; and your take home pay would be made up of both employer pay and your transition to retirement pension.

You might choose to cut back on your work hours because the income you receive from your super benefits could help to make up for any loss of salary.

With transition to retirement, your super benefit must be used to start a regular pension such as our Transition to Retirement Pension. This doesn’t allow for lump-sum cash withdrawals and is known as a non-commutable income stream.

How transition to retirement works

With transition to retirement you can access your super once you reach your Commonwealth preservation age. You can:

  • Start with part or all of your super benefit and start a non-commutable income stream with our Transition to Retirement Pension
  • Choose to receive between the minimum 2% and a maximum of 10% of your super account balance each financial year, calculated at the start of the financial year
  • Receive payments directly into your bank account monthly, quarterly or annually
  • Change the amount of pension you receive each year, subject to minimum and maximum limits set by the Commonwealth Government
  • Continue to work and have your contributions paid into your GESB Super or West State Super account
  • You can also change your super account structures if your personal circumstances change.

The benefits of transition to retirement

There are a number of ways you can use transition to retirement to benefit you:

  • Increase your super - you'll continue to work and can sacrifice some of your salary to super
  • Reduce your hours - you can work less without reducing your overall income, as your pension can make up for your lower salary
  • Increase your income - you'll be receiving an income stream from a pension as well as your normal salary

You can find the right balance to suit your needs, with the flexibility to change your strategy as your circumstances change. We recommend that you speak with a financial adviser, accountant or tax adviser to help you decide if transition to retirement is right for you.

Is transition to retirement right for you?

Transition to retirement is a way you can access your super while you’re still working.

Take our simple quiz to see whether it could be right for you.

Transition to Retirement form

Learn more or book a seminar

Find out how transition to retirement works with your account:

To learn more about preparing for your retirement, register for one of our seminars.

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Page last updated 14 May 2020