How to retire when you’re not ready to retire

Some dream of never working again and some fear absolute boredom.

Some dream of never working again and some fear absolute boredom. Photo: Getty

The idea of going from working full-time to not working at all can be a confronting one.

While many people stare out their office or factory window, dreaming of a time when they can sleep in, take holidays whenever they want and answer only to themselves, others wonder how they’ll fill their days.

Luckily, there are more choices than simply working or being retired.

Many Australians choose to make a gradual transition to retirement, by reducing their hours at work in the lead-up to finishing completely.

In fact, 40 per cent of Australians plan to move to part-time work before retirement, with 54 per cent of them intending to move into a different line of work for the transition, according to the Australian Bureau of Statistics.

With a bit of thought and planning, this bridge between a working life and retirement can ease the transition both emotionally and financially.

One option that makes sense for anyone contemplating this gradual move into retirement is a Transition to Retirement (TTR) strategy, offered by most super funds.

You’ll probably be able to access your super between the ages of 55 and 60, depending on when you were born.

If you don’t plan to stop working altogether as soon as you can access your super, you can use it to fund a gradual transition by rolling it into a retirement income stream.

The tax-free income from this stream can make up the shortfall between your full-time and part-time income, and meanwhile your superannuation balance can continue to grow thanks to your employer’s superannuation contributions.

There are ways you can easily transition from work to retirement

There are ways you can easily transition from work to retirement.

And you may consider boosting those super coffers even further, by salary sacrificing, with those contributions only taxed at 15 per cent.

Not everybody has the option of going part-time within their existing role, but it’s also possible to work part-time at another job even after retirement. If you decide to work less than 10 hours a week it won’t affect your ability to access your super.

Talk to your super fund to find the best option for you. Most industry super funds have low-cost or even free access to financial advisers to help you decide.

Another option to ease your way into retirement would be to do some volunteer work.

You’ll make new friends, have the satisfaction of helping your community and enjoy the sense of purpose that comes with any form of work.

Visit the Volunteering Australia website to find a volunteer role in your area.

Keep your super invested when you retire and grow your income.
Turn your super into an income stream when you retire and you can receive a regular income to top up the Age Pension, while the balance stays invested.

Everything you need to know is at

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