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Navigating your path to retirement

Ease into retirement gradually, maintain financial stability, and potentially optimise your super.
Published 1 Mar 2024   |   4 min read

Preparing for retirement can be complex, but also rewarding. One option available is the Transition to Retirement (TTR) strategy. It's a way to ease into retirement gradually while you keep working, maintain financial stability, and potentially optimise your super. In this blog, we’ll explore the steps to set up a Transition to Retirement pension with Australian Ethical, and offer insights and guidance to help you make the most of this flexible retirement approach. 

Understand the basics of a TTR strategy 

You can start a TTR once you’ve reached preservation age^ and are eligible. If you qualify, here’s two ways to use TTR:

  • Keep working whilst boosting your super: If you’re not quite ready to retire, you can use TTR to maintain your current level of work, access a retirement income and increase your salary sacrifice contributions. In some cases, this won’t effect your take home pay 
  • Slowly transition into full retirement: If you’d like to start slowing down, you can use TTR to reduce your work hours, while using your super to supplement your income  

Older lady making a Transition to Retirement plan in a garden


How a Transition to Retirement plan works with Australian Ethical: 

  • You’ll have two accounts – your existing super account and your new ‘pension’ account. You’ll need an active Australian Ethical super account as you’ll continue to receive SG contributions from your employer, as well as any voluntary contributions you make. 
  • You can only access your super as a regular pension income stream, not a lump sum. 
  • There are limits to what you can contribute to your superannuation, known as contribution caps.  
  • You need a minimum of $30,000 to start your TTR pension.
  • There is a transfer balance cap of $1.9 million.
  • When you retire you can consolidate your accounts by transferring your TTR pension into your super account or creating a new pension account using your TTR pension and money from your super account. 
  • There are annual minimum and maximum pension payment limits which are calculated based on your pension balance when you start your TTR pension. These are recalculated annually at the start of each financial year.  

Ready now? Start a TTR pension application

Assess your pension eligibility 

Before starting a TTR pension, you need to ensure you meet the eligibility criteria. You must have reached your preservation age, which varies depending on your birthdate, as shown in the table below. It's crucial to verify your eligibility to avoid any complications down the road. 

Preservation Age^

Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962  57
1 July 1962 – 30 June 1963  58
1 July 1963 – 30 June 1964  59
From 1 July 1964  60

Source: ATO website.


Considerations to help structure your transition to retirement strategy

Determine your retirement goals 

Clearly define your retirement goals. What do you want to achieve with your TTR plan? Do you seek to reduce working hours gradually, increase your retirement savings, or achieve a better work-life balance? Your goals will shape the structure of your TTR strategy.

Choose an investment strategy 

Your TTR plan should include an investment strategy tailored to your goals and risk tolerance. We have six ethical pension investment options ready-made for you to pick from to suit your needs. Each have different risk profiles for you to choose from depending on your financial objectives, risk tolerance and personal financial situation. 

Calculate your income needs 

Determine the amount of income you'll need to cover your expenses during your transition to retirement. This calculation should consider your living costs, potential part-time work income, and any other sources of revenue you may have. 

Assess the tax implications of your TTR plan

Understand the tax implications of your TTR strategy. While superannuation withdrawals are typically tax-free for individuals aged 60 and over, those between 55 and 59 may face different tax rules. Find out more at the ATO website

Review entitlements and insurance 

Check if starting a TTR pension will impact your or your partner’s entitlement to any government benefits. If you have death, total and permanent disablement, or income protection insurance within super, check if your cover will be impacted by commencing a TTR pension. 

How to start your transition to retirement with Australian Ethical  

Once you've set up your TTR and feel confident in your strategy, it’s time to take the steps to put it into action.  

  • Hit the ‘join’ button at the top right hand side of the Australian Ethical website then select ‘Pension’  
  • Choose Transition to Retirement (Taxed) income stream 
  • Enter your personal details 
  • Select your pension options & payment instructions 
  • Confirm your identity 
  • Review & submit your application 

Want to start now? Complete a TTR Pension Application.

Give our team a call on 1800 021 227 if you run into any issues. We're here to help. 

This is general information only and does not take account of your individual investment objectives, financial situation or needs. Before acting on it, consider its appropriateness to your circumstances and read the Financial Services Guide (FSG), Product Disclosure Statement (PDS), and Target Market Determination (TMD) available at You should consider seeking advice from an authorised financial adviser before making an investment decision. 


Australian Ethical acknowledges the Traditional Owners of the country on which we work, the Gadigal people of the Eora Nation, and recognise and celebrate their continuing connection to land, waters and culture. We pay our respects to Elders past and present and thank them for protecting Country since time immemorial.

See our Reconciliation Action Plan