A smooth transition into retirement

Updated : Oct 14, 2019 in Articles

A smooth transition into retirement


Over the years I’ve noticed that clients
who invest the time to try out their new retirement lifestyle, have an easier time
adjusting to retirement. If you’re thinking about retiring soon, you may be
considering reducing your working hours or taking some long-service leave to
give yourself some free time. By doing this, you may have more time to start a
new hobby, volunteer, spend more time with your loved ones, or plan the sea change
you’ve always wanted. Investing this time now could give you the opportunity to
test the waters before diving straight in. If this is part of your plan, as a
SASS member, it’s important to understand the potential impact that changes to
your work arrangements might have on your SASS retirement benefit. A large part of your final benefit is based on your final average salary at retirement. Put
simply the higher your final average salary, the more benefit you receive at
exit. When making changes to your work arrangements, it’s important to consider
how the changes will affect you. If you decide to work part-time, your
superable salaries will remain unchanged, however the rate at which you accrue
your employer finance benefit points will be adjusted going forward and it
may take you longer to reach your 180 benefit points. This may mean you need to work longer to maximize your SASS benefit. If you’re a shift-worker you also need
to consider shift-loading. If you reduce the number of shifts you work, or stop
shift work altogether you may reduce your shift-loading. By doing this, you may reduce your superable salary and your final benefit. As you wind down to
retirement, you may be tempted to take a lower-paid position. Before you do this
make sure you consider how your final benefit will be affected. If you lower
your salary lastly you may have accrued long-service leave. Generally if you take
your long service leave, there is no impact on your superable salary and your
employer contributions will continue at your full-time rates. Taking long service
leave can be a great opportunity to road-test your retirement without
affecting your final benefit. As a SASS member, the decisions you make around
your employment can have a big impact on your final benefit. By considering this
impact alongside your retirement goals, you are in a better position to make
decisions that are right for you. Before making any decisions about your SASS game, it’s a good idea to seek professional advice from an expert.

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