Smart superannuation strategies as you approach retirement

As retirement approaches, your superannuation becomes a strategic asset. Whether you're still working or ready to retire fully, understanding how to manage your super effectively can boost your income, reduce tax, and even benefit your family in the long run.

Still Working? Use a Transition to Retirement (TTR) Pension

If you’ve reached your preservation age (between 55 and 60, depending on your birth year), you may be eligible to start a Transition to Retirement (TTR) pension even if you’re still working.
This strategy allows you to:

• Draw an income stream from your super (4–10% per year)
• Continue contributing through employer super or salary sacrifice
• Boost your retirement savings while accessing extra income

Example:
Someone aged 60 earning $100,000 could salary sacrifice $20,000 into super and withdraw the same amount via a TTR pension meaning they pay less tax overall and preserve their lifestyle.

Fully Retired? Maximise Your Super and Age Pension

Once you’ve fully retired, you can access your super in several ways:

• Lump sum withdrawal
• Account-based pension
• Combination of both

You may also be eligible for a part or full Age Pension from Centrelink depending on your assets and income.

Planning for the Future: Minimise Tax for Your Children 

Consider a withdrawal and re-contribution strategy:

1. Withdraw funds from your super tax-free (once eligible)
2. Re-contribute them as non-concessional contributions
3. This converts taxable amounts to tax-free, potentially saving your children thousands when they inherit

It is important to know that limits do apply. $120,000/year or $360,000 under the bring-forward rule (as of FY2025–26). This approach is especially relevant if:

• You don’t need all your super immediately
• You want to leave more to your family, not the tax office

It is important to know that superannuation rules are complex and the right move depends on your income, goals, and family situation. At PKF, we help clients navigate retirement income planning, super tax minimisation and Centrelink and estate strategies

Common Questions about Superannuation

Can I access my super and still work?
Yes, this can be done through a Transition to Retirement pension if you've reached your preservation age.

Will my kids pay tax on my super if I pass away?
Yes, adult children pay tax on the taxable portion of your super. There are strategies to reduce this and we recommend speaking to a PKF adviser to help you get the outcome for your family.

What’s the age pension test for super?
Centrelink uses both income and assets tests, and how your super is held (accumulation vs pension) can affect eligibility.

Can I withdraw and re-contribute to reduce tax?
Yes you can do this, under the withdrawal and re-contribution strategy, you can reduce the taxable component in your super.

Is it worth getting financial advice for retirement?
Absolutely. Retirement is a complex financial stage and tailored advice can help maximise your income and minimise mistakes.

At PKF, we’ve guided individuals across Australia through ensuring their superannuation strategy as they prepare for retirement. We recommend you book a consultation with a PKF adviser and ensure your retirement is built on smart decisions, not guesswork.