As another financial year draws towards a close, it is worth reflecting on how much superannuation is shaking up not just retirement savings but also tax planning.

Surely, few super fund members would not know that their super lump sums and pensions become, subject to qualifications, tax free at age 60 or over. Fewer would know, however, that the assets of their fund supporting the payment of a pension become exempt from income tax and capital gains tax (CGT).

And what is continuing to generate intense and burgeoning interest is the ability for working fund members over 55 to take a transition-to-retirement pension, also known as a pre-retirement pension.

The approach of taking a transition-to-retirement pension while simultaneously salary-sacrificing into super - typically guided by a financial planner - appears to have well and truly entered the mainstream.

Your adviser can explain the various tax consequences, including the fact that the transition-to-retirement pensions become tax-free as soon as the recipient turns 60 and fulfill all requirements. And this, of course, is before retirement!

For the ATO's explanation of transition-to-retirement pensions, see: http://www.ato.gov.au/super/content.asp?doc=/content/74202.htm&page=1&H1

It is also worth reading a statement that the tax commissioner released in late 2005 about taking a transition-to-retirement pension while making salary-sacrificed super contributions. See: http://www.ato.gov.au/corporate/content.asp?doc=/content/66276.htm

Interestingly enough, transition-to-retirement pensions were introduced almost three years ago on July 1, 2005, but I believe it has taken some time for them to truly enter the public consciousness.

It seems that many members of our rapidly ageing population want to remain longer and longer in the workforce - particularly when their services are in such high demand.

The days are gone when fund members had to retire to gain access to their super savings.