TTR case studies

See how TTR works with these examples

Save more with TTR

Fred

Fred (60)

  • Fred turned 60 and is keen to add to his $175,000 super balance.
  • He earns $60,000 a year and is looking forward to retiring at 65.

Fred found that he could potentially add $17,000 to his retirement savings over the 5 years until he retires through TTR.


Fred’s super balance after 5 years

With no TTR

With TTR

Infographic shows how TTR helped Fred add $17,000 more to his super after 5 years. Without TTR his super balance after 5 years would be $237,000; with TTR his balance would be $254,000.

With no TTR

Infographic shows how TTR helped Fred save $17,000 more to his super after 5 years. Without TTR his super balance after 5 years would be $237,000; with TTR his balance would be $254,000.

With TTR

TTR helped Fred save more

  • Maintained the same take home pay that he would have had without TTR
  • Increased his super balance by $17,000 over five years
  • Saved $16,600 in tax
  • Increased his investment earnings by $2,800
  • But, paid an additional $1,000 in fees (TTR Income fees)

Save more - Fred’s TTR plan

Based on Fred’s information, here’s how he could set up TTR.

Infographic shows how with TTR Fred's super balance would be $254,000 at age 65

Save more - Fred’s TTR plan

Based on Fred’s information, here’s how he could set up TTR.

Average annual salary sacrifice amount

$16,800
per year

Amount to transfer into TTR Income

$125,000

Average annual TTR Income payment amount

$11,000
per year

Benefits

Fred will:

  • Grow his super balance at a much faster rate.
  • Lower his taxable income, giving him tax savings.

1 1
Open a TTR Income account

To start, Fred transfers some of his super into a TTR Income account.

$

Super balance

$125,000

Transfer amount

TTR I

TTR Income


2 2
Salary sacrifice into super
pie chart

Some of Fred’s current salary is paid directly to his super (salary sacrifice) which reduces his taxable income and saves tax.

$60,000

Current annual salary

− $19,100

$19,100

Salary sacrifice amount

=

= $40,900*

$40,900*

Estimated new taxable income

($36,200)

Estimated take-home pay (after income tax and medicare levy have been deducted).


3 3
Boost super balance

This salary sacrificed amount is added into Fred’s super account, along with his employer contributions, making his balance grow faster.


4 4
Receive payments from TTR Income to keep the same take-home pay

Fred receives payments from his TTR Income account to maintain his current take-home pay.

$36,400

Estimated take-home pay amount p.a

+

+ $12,500

$12,500

Total TTR Income payments p.a

=

= $48,900

$48,700

Take-home pay


Review annually

As circumstances change, Fred reviews his TTR strategy annually to make sure it’s still right for him.

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