Important! Since 1 July 2017, the tax exemption on fund earnings financing a transition-to-retirement pension (TRIP) has been removed. The super laws no longer consider a TRIP to be a superannuation income stream in retirement phase. This change applies to TRIPs in place before July 2017 as well as TRIPs commenced on or after 1 July 2017.
A transition-to-retirement pension (what SuperGuide has always called a TRIP, and now the federal government has also chosen to follow our lead and call it a TRIP) enables any Australian who has reached their preservation age (at least age 55, and moved to at least 58 years since 1 July 2017, depending on your date of birth), to access his or her superannuation benefits in the form of a pension without retiring or satisfying an additional condition of release.
Using three case studies, this article illustrates how a TRIP can operate in practice.