Transition to retirement

Thinking about retiring, but not quite ready? Use your super before you finish working to either save more or work less.

Start using your super before you finish working

Transition to retirement (TTR) is a strategy recognised by the government. TTR allows you to access some of your super while you're still working, by opening a retirement income account, like our Choice Income account.

With that extra income in your pocket, you could:

  • grow your super faster
  • receive a regular income from your super, alongside your salary
  • access the rest of your money when you retire
  • cut down your working hours, but keep the same take home pay.

You may also reduce the tax you pay.

See how Dave is using a TTR strategy to work less, and fish more with an AustralianSuper Choice Income account.

See how Dave is using a TTR strategy to work less, and fish more with an AustralianSuper Choice Income account.

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How TTR works

Your super account works alongside your Choice Income account with the aim of reducing the overall tax you pay while helping boost your super savings. Since you’re still working, employer payments mean your super balance continues to grow. And at the same time, you receive income account payments, transferred directly to your bank account.

Save more: supercharge your super savings

Transitioning to retirement could help you put more into super while paying less tax. All you need to do is ask your employer to pay some of your salary into super. You can then top up your pay packet with regular payments from your Choice Income Account. 

Before you turn 60, you’ll receive a 15% rebate for the tax on your Choice Income payments. Once you turn 60, you won’t pay tax at all on your income payments. With your extra income and tax savings, you can keep the same take-home pay while growing your super.

Learn more by watching our Save more video.

Save more: supercharge your super savings

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Use your super to reduce your working hours.

If you’re able to transition into your retirement by working fewer hours, you may be able to use your Choice Income account to make up the difference in your take-home pay.

This means you can enjoy working less without sacrificing your lifestyle. It also means you can keep working – and saving – for longer.

Learn more by watching our Work less video.

Use your super to reduce your working hours.

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  • Am I eligible to transition to retirement?

    To be eligible for transition to retirement (TTR), you must have reached the age at which you can access your super – known as your preservation age.

    You'll need $30,000 in your super account to start a transition to retirement strategy. This is so you can move at least $25,000 to your Choice Income Account while leaving at least $5,000 in your super account ($10,000 if you have insurance cover).
  • What’s my retirement or ‘preservation’ age?

    Your preservation age depends on when you were born.

     

    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

     

Set up a Choice Income account

It’s a simple sign up process to kick start regular retirement income stream payments.

Learn more Learn more

Changes from July 1, 2017 

Some of the tax benefits of a transition to retirement strategy changed from July 1, 2017. If you're already using a transition to retirement strategy (TTR), you can find out more about what these changes might mean for you. 

Find out more
*TTR can be complex and isn’t suited to everyone. You should get advice to see if a TTR is right for you.

Retirement Division Product Disclosure Statement - pdf, 3.2MB

For people retiring and needing to draw an income from their savings in a tax-effective environment

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