Not ready to retire just yet…
Many of us don’t want to retire right away. Some of us want to keep working – maybe just not as much. Others may not have enough money to retire. Regardless, this is where a Working Income Support Pension (WISP) can be a great option.
Once you’ve reached Preservation Age, you can use a WISP to:
1. Work less, but keep the same amount of money coming in each week
If you’re looking to work less and live more, a WISP can give you the power to do this without reducing your income. By moving money from your super into a WISP account, you can use your pension payments to make up the pay cut that comes with working less hours.
2. Save more super and reduce your income tax – without cutting into your take-home pay
A WISP can make it easier for you to increase your super savings in the lead up to retirement. To do this, you move money from your super account into a WISP account. You then use your WISP account to pay you a certain amount each month. At the same time you get your employer to salary sacrifice a similar amount into your super account. So you have the same amount of cash coming in each month.
Plus, because you are salary sacrificing extra money into your super, you’re growing it faster. And, because this money is coming out of your before tax income, you may end up paying less tax.
3. Increase your income by accessing your super
What would you do if you had extra income? If you have a mortgage or other debts that you want to get paid off before you retire, a WISP could help you. It would pay you a second income, on top of what you already earn, which you can use to pay off your debts faster.