In 2005, the Howard government introduced legislation allowing older Australians to access part of their superannuation savings without the need to retire.
These changes formed part of the Government’s overall policy to keep older Australians in the workforce for longer, in a bid to address issues with an ageing population and a labour and skills shortage.
The Government’s intention at the time was to allow these older workers to reduce the hours they spent at work while allowing them to supplement their reduced employment income with their retirement savings.
This was achieved with the introduction of “transition to retirement” (TTR) pensions.
Where eligible, these pensions allow you to access up to 10% of your TTR pension account balance each year even if you remain gainfully employed.
Prior to these changes, most individuals would need to retire to access their super.
