Planning for Retirement While You’re Still Working? Explore the benefit of an Income Swap Strategy.
A Transition to Retirement Income Swap Strategy may help boost retirement savings — without sacrificing current income or lifestyle.
At MLS Financial in Penrith, we often recommend this powerful strategy for clients in Penrith who are still working but getting close to retirement. When implemented correctly, it can help you reduce tax, increase super savings, and ease into retirement on your terms.
Let’s take a closer look.
What Is a Transition to Retirement Income Swap Strategy?
The Transition to Retirement strategy allows you to access your super while you’re still working, once you’ve reached your preservation age.
The Transition to Retirement income swap involves two key steps:
- Salary sacrifice part of your before-tax income into super
- Draw an income from your super via a Transition to Retirement Income Stream to replace the amount you’ve sacrificed
The result? You maintain your take-home pay while reducing tax and growing your super faster.
How Does the Strategy Work in Practice?
Here’s a simple example:
- Sarah is 60 and working full-time.
- She salary sacrifices into her super (within her concessional cap).
- To replace this reduction in income, she draws an income from her super via a Transition to Retirement Income Stream to ensure she is not reducing her take home pay.
- Because these payments are generally tax-free after age 60, and salary sacrifice contributions are taxed at just 15% inside super (instead of marginal rates), Sarah:
- Pays less tax overall
- Keeps her take-home pay the same
- Grows her retirement savings more efficiently
Key Benefits of the Transition to Retirement Income Swap Strategy
✅ Boosts Super Faster
You’re using the tax system to increase your retirement savings in your final working years.
✅ Tax Efficient
After age 60, income drawn from a TRIS is generally tax-free, and salary sacrifice may reduce your taxable income.
✅ Flexible
You can adjust the income stream amount and salary sacrifice depending on your needs.
✅ Ease Into Retirement
A Transition to Retirement may be used to supplement income — a softer transition than stopping work altogether.
Things to Consider
While the strategy has many benefits, it’s not for everyone. You should consider:
- Your preservation age and whether you’ve met a condition of release
- Your concessional contributions cap (currently $30,000 p.a.)
- Whether your employer offers salary sacrifice
- Your current super balance and how long you plan to keep working
That’s why advice is essential. At MLS Financial in Penrith, we carefully model each client’s position to ensure the strategy delivers a real benefit.
Talk to a Retirement Planner in Penrith
At MLS Financial in Penrith, we’ve helped many local clients implement smart, tailored strategies like the TTR income swap to make the most of their pre-retirement years.
We’ll guide you through:
- Whether the strategy suits your goals
- How to structure salary sacrifice and pension payments
- Managing tax, contributions, and Centrelink impacts
- Creating a full retirement plan that evolves with you
Work With a Retirement Planner in Penrith
At MLS Financial, we’ve helped individuals, couples and families in Penrith and Western Sydney take control of their retirement — whether it’s years away or already begun.
We offer:
- Personalised retirement income strategies
- Superannuation and investment advice
- Centrelink support and administration
- Ongoing financial planning as life changes
Let’s Talk About Your Retirement
Whether you’re just getting started or nearly ready to retire, the best time to seek advice is now.
📞 Call MLS Financial on 1300 791 800
📩 Or get in touch online to book a no-obligation chat.
We’ll help you retire on your terms — with clarity, confidence and peace of mind.
Disclaimer:
This information is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider speaking to a qualified financial planner before making any financial decisions. MLS Financial and Infocus Securities Australia Pty Ltd do not accept responsibility for actions taken based on this content.
