If you are over 55, you are able to access your superannuation while still working via a Transition to Retirement income stream, to reduce tax and boost your superannuation balance.

This enables two options:

  1. Reduce your work hours and use your superannuation income stream to top-up your income, or
  2. Continue to work full-time, boost your superannuation balance while maintaining your net income. To illustrate the principle of this option, consider the following simplified example. Note that the effectiveness of this approach will be influenced by your marginal tax rate, superannuation balance and composition.


Julie is 60 years old and wants to work until age 65. Her only contribution to superannuation until now has been the 9.5% superannuation guarantee from her employer. While she is keen to increase her superannuation over the next 5 years to set her up for retirement, she can’t see how to do it, since she has no spare income after paying for all her expenses.


  1. Salary sacrifice into superannuation. This serves to boost Julie’s superannuation balance, while reducing taxable income. She could consider salary sacrificing up to the concessional contribution cap of $35,000 (including employer contributions).
  2. Commence a ‘Transition to Retirement’ income stream. This serves to top-up her net income to compensate for the salary sacrifice arrangement. As she is over 60, the income stream is tax-free.


  • Tax bill is reduced
  • Superannuation balance increases
  • Net income remains the same

A ‘Transition to Retirement’ income stream with salary sacrifice into superannuation is a powerful strategy for people over 55 who continue to work. There are variations to this approach depending on your situation and needs, and we strongly encourage you to seek professional advice.

Contact Brendon, Raghu or David on (02) 9908 9888 or wealth@edneyryan.com.au to discuss whether a Transition to Retirement + Salary Sacrifice strategy is appropriate for you.