14 Sep


Posted at 15:07h

The transition to retirement (TTR) strategy allows you to access funds from your super account as you work.

You should consider opting for this strategy to either supplement your income if you would like to reduce your work hours, or boost your super and save on tax while you keep working full time.
Setting up a TTR pension can be complicated, so it can be helpful to contact a financial advisor to walk you through the process. To kick start your TTR pension, you have to transfer some of the funds from your super into an account- based pension. Keeping some money in your super fund is essential so that you can continue to receive your employer’s contributions or continue to make your voluntary contributions.

Importantly, starting a TTR pension might impact the government benefits you or your partner are eligible to receive. Therefore, you should contact a Services Australia Financial Information Service (FIS) officer for more information about potential impacts. Further, if individuals have life insurance connected to their super the conditions of this might change so that your cover is reduced or stopped if you begin a TTR pension.

TTR to reduce work hours


  • Continue to receive super contributions: This will replace the money you take out
  • Pay less tax: Depending on your age, TTR pension payments are tax free or taxed at a concessional rate of 15%.
  • Ease into retirement: Start planning for the leisure time in your retirement.


  • Affects retirement income: Drawing money from your super early means you’ll have less money once you do retire.
    TTR to save on tax Pros
  • Boost your super: Use your TTR pension with salary sacrificing to top up your super as you approach retirement.
  • Save tax: Get taxed at 15% which is likely to be lower than your marginal tax rate.
  • Pay less on tax income: Depending on your age, TTR pension payments are tax free or taxed at a concessional rate of 15%.
  • Complexity: Might need to consult a financial advisor if you feel this strategy is for you, which costs money.

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