If 55 or over and still working

A transition to retirement strategy may allow you to build a bigger retirement nest egg without reducing your current income.

To be eligible for this strategy, you need to be:

• 55 or older
• still working
• an employee

Here's how it works:

• You contribute part of your pre-tax salary directly into your super fund,
• You transfer some of your existing super into a Transition to Retirement Pension (an investment that allows you to draw down on your super), and
• You use the regular payments from the TRP to replace the salary you sacrifice into super.

If you're self-employed, you can follow the same process but, instead of step one, you can invest some of your business income in super and claim a tax deduction for it.

To find out whether a transition to retirement strategy may be suitable for you, speak to a financial adviser.