Transitioning to Retirement - how a TTR account can work for you 

When you reach your preservation age, you can access your super as a TTR pension without having to retire. You start an ethical TTR pension by opening an account and then transferring some of your super into your pension account.

You’ll need to leave a small amount in your super account (any amount to keep it active) so that it can receive ongoing employer super contributions and any voluntary contributions you make. If you’re younger than 65, you can then draw down or access a TTR pension income (between 4% and 10% of the pension account balance each financial year). You can’t withdraw a lump sum.

Your TTR pension can be transferred back into your super account any time.

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Using a TTR to boost your super

A TTR pension can be used in conjunction with increased concessional super contributions to save tax in the lead up to retirement.

  • Grow your good - Your super balance will get a boost through increased concessional contributions. Your employer will continue to make super guarantee contributions and you can make voluntary salary sacrificed contributions to your super account.
  • Pay less tax on contributions - Super guarantee contributions and salary sacrificed contributions are taxed at a low rate of 15% when they are received by your super fund. As this is likely to be lower than the marginal tax rate applied to your salary you may reduce your tax when making pre-tax (salary sacrifice) contributions.
  • Pay less tax on income - If you are aged 60 or older, in most cases, your pension payments will be tax-free. If you are aged 55-59 then the taxable portion of your pension payments will be taxed at your marginal tax rates, however you will receive a 15% tax offset.

We recommend seeking financial advice if you are considering commencing a transition to retirement pension. Please read the Product Disclosure Statement and Pension Additional Information Booklet or visit Moneysmart for further information.

Reducing your work hours with a TTR

As you approach retirement you might like to reduce your work hours without taking a big cut in your pay. A transition to retirement pension can be used to top up your employment income if you decide to reduce your work hours.

  • Ease into retirement - It gives you a chance to explore new hobbies and start planning what you will do with your extra leisure time before you retire completely.
  • Supplement employment income - If your reduced income is not quite enough to maintain your current lifestyle a TTR pension can top it up.
  • Receive contributions - You will continue to receive employer contributions which will help balance out the amount you take out in pension payments.
  • Pay less tax on income - If you are aged 60 or older, in most cases, your pension payments will be tax-free. If you are aged 55-59 then the taxable portion of your pension payments will be taxed at your marginal tax rate, however you will receive a 15% tax offset. More information on this tax treatment is available on the ATO website.

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Any questions?

If you have any questions or need help completing your application, please call us from 8:00am to 8:00pm AEST weekdays on 1300 134 337 or contact us.