As you approach retirement, you may want to reduce your hours to improve your work-life balance. But will reducing your hours also reduce your Defined Benefit?
The truth is it depends on your benefit design. To learn more about the design that applies to your Defined Benefit, see the Handbook available on your plan microsite.
In general, reducing your hours is unlikely to have an impact on the Final Average Salary used to calculate many retirement benefits, although it may impact your benefits by reducing the rate at which your super accumulates.
Before you reduce your hours
If you’re considering reducing your hours as you transition to retirement, think about:
- talking to your employer about your options, like potentially purchasing extra leave
- discussing your needs with your family, and
- meeting with an adviser to make a plan.
Want some advice?
Speak to your adviser. If you don’t have a personal financial adviser, Australian Retirement Trust has qualified financial advisers1 who can help you over the phone with simple advice about your Super Savings account. This service is included in your membership. If you need financial advice about more than just your super, we may refer you to an accredited external financial adviser2. Advice of this nature may incur a fee. You can find out more about financial advice options at art.com.au/advice/options
1 Employees in the Australian Retirement Trust group provide advice to members and employers as representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818 AFSL No. 227867) (SFS), that is wholly owned by the Trustee as an asset of Australian Retirement Trust. SFS is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide (pdf) at australianretirementtrust.com.au/fsg for more information.
2 The Trustee has established a panel of accredited external financial advisers who are not employees of the Australian Retirement Trust group. The Trustee is not responsible for the advice provided by these advisers and does not receive or pay any referral fees. These advisers will explain to you how their advice fees are determined.