See how TTR works with these examples
Work less with TTR
Tina (60)
- Tina has just turned 60 and is keen to add to her $140,000 super balance.
- She earns $67,100 a year before tax, or about $53,500 a year after tax and is looking forward to retiring at 65.
Tina would like to reduce her working week to 4 days, whilst still maintaining the same level of income. By starting TTR, Tina is able to achieve this.
Work less - Tina’s TTR plan
Based on Tina's information, here’s how she could set up TTR.
Work less - Tina’s TTR plan
Based on Tina's information, here’s how she could set up TTR.
Amount transferred into TTR Income
$120,000
Tina’s annual TTR Income payment amount
$8,600
Benefits
Tina can:
- Ease into retirement or extend her career by working less.
- Use her TTR Income account to replace any reduced salary.
- Continue to grow her super as she keeps working.
Open a TTR Income account
To start, Tina needs to transfer some of her super into a TTR Income account. Based on government limits, below is the optimal amount to transfer into TTR Income from her super.
$
Super balance
→
↓
$120,000
Transfer amount
→
↓
TTR I
TTR Income
Reduce hours worked
mon
tue
wed
thu
fri
$
$
$
$
x
Tina's take home pay
$53,500
5 days per week
↓
Tina's take home pay
$44,900
4 days per week
Receive payments from TTR Income to keep the same take-home pay
Tina can receive payments from her TTR Income account, to supplement her reduced income.
$44,900
4 day working week income
+
+ $8,600
$8,600
TTR Income payment
=
= $53,500
$53,500
Same take-home pay
Review annually
As circumstances change, Tina reviews her TTR annually to make sure it’s still right for her.
-
Assumptions
This example is provided for illustration purposes only and is not a representation of the benefits that may be received or the fees and costs that may be incurred. The information should not be taken as financial advice. Source: AustralianSuper internal calculations.
- Income figures have been rounded to the nearest $100
- Current tax rules for the 2019/20 financial year have been used.
- This calculation applies to the first year of TTR only.