IRIS Transition to Retirement Income Stream

You can now get access to your super while still working. This option, called Transition to Retirement (TTR), is available to all superannuation fund members upon attaining your preservation age (from age 55 if you are born before 1 July 1960).

With a TTR, you can:

• Switch to part-time work without having to reduce your income. Ease into full retirement by topping up your income needs with regular payments from your super income stream; or
• Continue working full time and significantly increase your current super balance. Gain the tax benefits by salary sacrificing larger sums into super and supplement your income with regular payments from your super income stream.

Will it work for me?

A TTR Income Stream has many advantages in that:

• it may provide the lifestyle flexibility you need to enjoy working for a longer period, whilst supplementing your income from your super;
• it may reduce your current and future tax burdens and help fund salary sacrifice super contributions from present wages/salary income;
• it doesn’t affect your ability to contribute to super, and the higher your income, the more you'll be able to afford to put in on a pre-tax basis, subject to the cap that applies to making pre-tax contributions to super; and
  
• the income earned is not subject to the 15% tax rate, which would apply if your money was still invested in a ‘normal’ superannuation fund.

Restrictions

You will be restricted from making lump sum withdrawals from your account until you fully satisfy at least one of the following ‘conditions of release’:

• Permanent retirement from the workforce on or after age 55;
  
• Ceasing current employment on or after age 60;
  
• Attaining age 65, whether working or not;
  
• Total or permanent disablement or death.
  

When you meet one of the above conditions, your TTR Income Stream will revert to a 'normal' Super Income Stream. If you are under 60, IRIS will require written advice from you to confirm you have ceased employment and no longer intend to work.

The ability to successfully take advantage of a TTR Income Stream will vary from person to person according to individual circumstances. Determining whether it will work financially for you can be complex and confusing.

Please read the Product Disclosure Statement (PDS) carefully before making any decision on investing in IRIS. We recommend that you see a qualified financial planner to discuss your personal circumstances.