Transition to retirement (TTR) advice knox – How to save tax, particularly age 55 and over
The transition from hard work to retirement starting point. 55, energy and stamina gradually decline. Some people want to work a little less time, but hope it will not reduce revenue. Others want to seize the last decade before retirement, earn more money, to protect their old age relatively high standard of living. Two ideas are reasonable. The government put 55 years of hard work as a legal transition to retirement starting from (will gradually increase to 60 years). In principle, government regulations Provident Fund age is 65 years old, but already there are ways to start 55-year-old can come up with money from the fund in a: First you decide to permanently retire (also allows you to change your mind later). The second is to join a transitional retirement plan TTR. This program is very popular in the mainstream society. About 55, working two or three decades, the annual income is in the moderate, the accumulated fund is not too little. But for us Chinese immigrants, it varies, and some middle-aged immigrants come, or until the underlying work, and income. These friends, 55-year-old is still business, not to mention the transitional retirement thing.
If your situation requires transitional retirement policy…
Australia transitional retirement policy TTR (Transition To Retirement) can help a lot of people a smooth transition to retirement. If you continue to work after the age of 55, and can operate TTR policy further enhance your income. If you want to reduce the working hours, into the semi-retirement stage, TTR can help you keep the original income level. The basic point of this strategy is that your annual marginal tax rate higher than 15%.
- The first step, and the ‘salary sacrifice’ Salary Sacrifice practice as a portion of gross salary with pretax contributions deposited into your Super Acc, the tax rate down, less tax, which is a prerequisite TTR strategy (note : Every year limited, above the limit to pay higher taxes). But this part of the money to pay into SUPER supposedly going to retire before the age of 65 can be used.
- The second step, you want Super Acc money, all (if you decide to retire, quit) or in part, go to your newly opened Pension Stream
Acc. This is only 55 years old are eligible to practice before, it is crucial to TTR. Then
The third step, you have to be extracted from the annual Pension Stream Acc inside at least 4%, at most 10%, into your personal bank account.
This trilogy is more than simply give you an idea, the specific operation to ask the professionals to complete. High savings content of this strategy, and can last more than a decade (may want to review once a year by us TTR Retirement Advice Knox), it should be a good comparison to see if suitable for you. In general, when you fifty-five, more than the annual income of sixty-five thousand, SUPER hundred thousand or more, the TTR is worth considering. If you start late, toss, less SUPER, low income, or even loans to buy a house, then the implementation of TTR must be accurately calculated to avoid more harm than good.
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