Important! Since 1 July 2017, the tax exemption on pension fund earnings financing a transition-to-retirement pension (TRIP) has been removed. This change applies to TRIPs that were in place before July 2017 as well as TRIPs commenced on or after 1 July 2017.
Gone are the days when all Australians work to a certain age, and then the next day, they retire from the workforce. The end of work and the beginning of retirement is more fluid in recent times, and the rules that apply to accessing superannuation benefits reflect this blurring of what retirement means.
In 2005, a special type of super pension was introduced, known as a transition-to-retirement pension. By starting a transition-to-retirement pension (what we call a ‘TRIP’), you don’t have to retire to withdraw your super benefits. You can work part-time or full-time or even casually, and withdraw a portion of your super benefits each year.