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 $14,700 to his retirement savings over the 5 years until he retires through TTR.


TTR helped Fred save more

  • Maintained the same take home pay that he would have had without TTR
  • Increased his super balance by $14,700 over five years
  • Saved $13,600 in tax through a salary sacrifice arrangement
  • But, paid an additional $400 in fees (across both super and TTR Income accounts)

Save more - Fred’s TTR plan

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

Save more - Fred’s TTR plan

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

Annual salary sacrifice amount

$16,800
per year

Amount to transfer into TTR Income

$165,000

TTR Income payment amount

$11,200
in the first year1

1 $11,400 in the second year, $11,400 in the third year, $11,400 in the fourth and fifth years.

Benefits

Fred will:

  • Grow his super balance.
  • 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

$165,000

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

$16,800

Salary sacrifice amount

=

= $40,900*

$43,200

New taxable income

$37,600

Fred's take-home pay


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.

$37,600

Take-home pay amount

+

+ $12,500

$11,200

TTR Income payment in the first year1
1 $11,400 in the second year, $11,500 in the third year, $11,400 in the fourth and fifth years.

=

= $48,900

$48,800

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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