What is transition to retirement?
A transition to retirement (TTR) strategy lets you access some of your super
- while you’re still working and
- when you've reached preservation age – the age when you can access your super.
You can start a TTR strategy by opening a TTR Income account alongside your regular super account. This way you could save more before you retire or you could wind back on work, while topping up your take-home pay.
How a TTR strategy works
When you reach preservation age and you're still working, you can start a transition to retirement (TTR) strategy to access some of your super.
To do this you need a super account and a TTR Income account.
Here's how both accounts work together in a TTR strategy.
For details download the Transition to retirement with TTR Income brochure (PDF).Open TTR Income account
TTR Income fast facts
- Once you’ve opened a TTR Income account, you can’t add more money by law. Contributions can be made to your super account.
- By law, you can get income payments of up to 10% of your TTR Income account balance each year. When you turn 65 (or when you retire, or stop working for an employer after turning 60) this limit no longer applies.
- Your super and TTR Income accounts stay invested.
How TTR can work for you
Benefits for you
Your income payments are generally tax free, if you’re 60 or over.
Use your TTR Income payments to top up your take-home pay, so you can work less or save more.
Continue to grow your super because you’re still working.
Start this interactive guide to view examples.Start
With retirement around the corner, you may be thinking of winding back your work hours to ease into a new lifestyle, or you might prefer to make the most of your last working years to boost your retirement savings.
Either way, we can help you transition to retirement.
If you've reached preservation age and are still working, you could access some of your super with a transition to retirement, or TTR strategy.
To start a TTR strategy, you can open a TTR Income account with AustralianSuper and transfer some of your super into that new account where both accounts work side-by-side.
Your super account stays open to receive your employer's contributions and any extra contributions from you.
At the same time, you can top up your take home pay with up to 10% of your TTR Income balance.
Together, your super and TTR income accounts can help you work less or save more.
Work less. If you work less, you could top up your reduced salary with payments from your TTR Income account.
At the same time, your super account continues to receive your employer contributions.
Save more. If you’re 60 or older, you could use a TTR strategy to potentially grow your super while your take home pay stays the same.
You may salary sacrifice to pay less tax on your super contributions while topping up your pay with tax free TTR Income payments.
Then when you tell us you've permanently retired, change jobs after turning 60, or when you turn 65, your TTR Income account becomes a Choice Income account.
This means your payments and investment returns become tax free.
Starting a TTR strategy can be complex and may not suit your circumstances.
So it's a good idea to speak to a financial advisor.
To learn more about AustralianSuper's TTR Income account, visit australiansuper.com/TTRIncome or call us at 1300 300 273.