Reduce work hours

Work part time on similar income

This transition to retirement strategy aims to help you phase in retirement without necessarily reducing your take home income along the way.

It involves opening a superannuation product, known as an account-based income stream.

You roll a portion of your super into your income stream account. You get paid regular income payments from your account balance, while you continue to receive employer contributions into your PSSap account.

Benefits can include:

  • phase in retirement by working less
  • super (tax-free from age 60) as a regular income stream before retirement

This strategy however will reduce your total super savings. That's because you spend a portion of your super savings before permanent retirement and your employer may contribute less in super contributions on your behalf based on you getting paid less.

The PSSap Retirement Modeller can help you project how much money you need in retirement.

It's possible to take up this strategy in the Australian Government super environment using the income stream product available to PSSap members called Commonwealth Superannuation Corporation retirement income (CSCri). CSCri is offered through PSSap.

More information

How the strategy works

How to take up this strategy in the Australian Government super environment:


You must be a PSSap contributor who:

  • has reached preservation age (age 60 if born on or after 1 July 1964)
  • can transfer a minimum of $20,000 from PSSap into an income stream product called Commonwealth Superannuation Corporation retirement income (CSCri).

Speak to your employer about the possibility of going part time in your organisation.

See withdrawing super to find out your preservation age.

Strategy set-up

Open a CSCri account with a minimum starting balance of $20,000.

Get regular income stream payments from CSCri (monthly, quarterly, half yearly or annually) between minimum and maximum annual payment amounts.

Take home income

By getting income payments from super, you can reduce your work hours without reducing the total amount of money you have to live on.

The regular income from your CSCri account replaces the employment income you forgo once you move from full- to part-time work. That means you can shift into retirement gradually without sacrificing your lifestyle along the way.

Final super benefit

To help work out much you could end-up with, use the following calculators:

Remember, you will be drawing down your super before retirement, meaning you will have less super savings at retirement. We encourage you to first consider how long until you wish to retire and how much income you will need to live on for a retirement of 20 years or more.

Permanent retirement

What happens to this strategy when you stop work and permanently retire?

Because you no longer work for a PSSap participating employer, you can no longer save into PSSap. Instead, you can consolidate your super into PSSap before you permanently retire. Then you can open a single retirement income stream with your consolidated super to enjoy:

  • regular payments to meet your income needs
  • no set maximum annual income amounts
  • tax-free payments from age 60
  • ad-hoc withdrawals when needed
  • investment choice
  • tax-free returns
  • online account management.

See open income stream to join the income stream product for PSSap members called Commonwealth Superannuation Corporation retirement income (CSCri). This product can be used as either a transition or a retirement income stream.

Financial advice

We encourage you to first speak with a financial planner to ensure this transition strategy is appropriate for your needs, circumstances and retirement planning goals.

See financial advice to learn about the personal financial advice service offered to PSSap members by CSC's authorised* financial planners.

* Our authorised financial planners are authorised to provide advice by Guideway Financial Services (ABN 46 156 498 538, AFSL 420367.). Guideway is a licensed financial services business providing CSC financial planners with support to provide members with specialist advice, education and strategies.

Start today

See open income stream to join the income stream product called CSCri.