Many people think pensions are just for when you fully retire, but that isn't always the case.

So why should you think about opening a pension account beforehand? Because it could save you thousands of dollars  a year in tax.

It works like this. If you are over 55 and still working, you can open a Transition to Retirement pension account with your xisting super balance and receive regular payments from your GuildPension account taxed at a concessional rate.

Tax saving tip #1: The investment earnings on your Pension account are tax free and income payments are taxed at a lower rate.

Keeping your GuildSuper account open at the same time means you can boost your super by making additional salary sacrifice contributions from your pay while receiving an income stream from your GuildPension account.

Tax saving tip #2: Salary sacrificing lowers your pre-tax income, which could reduce income tax.

The combination of tax-free investment earnings on your GuildPension account and concessional tax on contributions made to your GuildSuper account, plus reduced taxable income (as a result of salary sacrificing your income to super) could add up to thousands of dollars in tax savings.

GuildPension has been established to help you benefit from this type of strategy. Not only can you save tax, GuildPension also offers a very competitive fee structure. All of which allows more money to stay in your account, making your retirement savings work harder for you.

Even if you are looking to stop work permanently, there are many reasons to start a standard GuildPension account. As well as tax free investment earnings, you can benefit from flexible income payments and a choice of investment strategies.

Want to learn more?

Have a look at our  webinar called “Tax Free Super” to see how a transition to retirement strategy could work for you.