How to start your transition to retirement

How to retire

Making the transition to retirement can be a complicated process, so you may want to talk to an adviser before you begin*. Basic information can be accessed for free, but as the complexity of advice increases, so does the cost. Any fees incurred can typically be deducted from your super account.

Accessing your super early

To be eligible to start a transition to retirement (TTR) strategy you must have reached the age you can access your super, known as your preservation age. You also need to be currently employed and have a minimum of $30,000 to start the TTR.

So when can you set up a TTR? If you were born before July 1, 1960, you can do so as young as 55. For those born between July 1, 1960 and June 30, 1961, you can start your TTR at 56. The age you can start your TTR subsequently goes up a year for each year thereafter until July 1 1964, with those born after that date permitted to start their TTR at 60.

Setting up an account

Setting up an account online is quick and easy. You’ll start to receive a regular income as soon as we’ve processed your application. Before you start you should read the Choice Income Product Disclosure Statement.

How does TTR work?

Once you reach the age you can access your super, you can open an income account alongside your regular super account. The two work together and may reduce 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. At the same time, you receive income account payments, transferred directly to your bank account.

TTR enables you to work less by accessing some of your super early so your take home pay remains the same, or you can use it to pay some of your salary directly into super to save on tax.

*The financial advice given to you will be provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd (AustralianSuper) and therefore is not the responsibility of AustralianSuper. With your approval a fee may be charged if a Statement of Advice is provided.

Transition to retirement