As shown in the table below, by using a TtR
strategy, you can maintain your after-tax
income, despite reducing your work hours.
But it does come at a price—your super
balance may dwindle over time as you draw
down your pension payments.
17
2. Same hours, more super
The other option is a TtR strategy that may
allow you to maintain your work hours, but
increase your salary sacrifice contributions to
super, and supplement your income with a
TtR pension so that there is no reduction in
your after-tax income.
So let’s say you’re over 60, earning
$60,000 a year before tax and you have
$200,000 in your super, and you choose to
use the full amount to start a pension.
As shown in the table below, together with
your pension income, you can salary sacrifice
$24,380 a year and still receive the same
amount *