Summary
Easing into retirement
If you’re nearing retirement age but not ready - or able - to stop work, you might consider transitioning into retirement by cutting back on work hours. But as you do this, there are ways you can continue to make the most of your super in your working years before retirement.
A transition to retirement (TTR) strategy allows you to access some of your super while you’re still working. Perhaps you want to cut back on work hours but need to maintain your income. Or maybe you want to keep working a little longer to make more of your super. AustralianSuper’s TTR account1 lets you access some of your super, paid to you as an income, while you’re still working, if preservation age has been met.
What is transition to retirement?
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Show transcript
With retirement around the corner, you may be thinking of winding back your work hours to ease into a new lifestyle, or you might prefer to make the most of your last working years to boost your retirement savings.
Either way, we can help you transition to retirement.
If you've reached preservation age and are still working, you could access some of your super with a transition to retirement, or TTR strategy.
To start a TTR strategy, you can open a TTR Income account with AustralianSuper and transfer some of your super into that new account where both accounts work side-by-side.
Your super account stays open to receive your employer's contributions and any extra contributions from you.
At the same time, you can top up your take home pay with up to 10% of your TTR Income balance.
Together, your super and TTR income accounts can help you work less or save more.
Work less. If you work less, you could top up your reduced salary with payments from your TTR Income account.
At the same time, your super account continues to receive your employer contributions.
Save more. If you’re 60 or older, you could use a TTR strategy to potentially grow your super while your take home pay stays the same.
You may salary sacrifice to pay less tax on your super contributions while topping up your pay with tax free TTR Income payments.
Then when you tell us you've permanently retired, change jobs after turning 60, or when you turn 65, your TTR Income account becomes a Choice Income account.
This means your payments and investment returns become tax free.
Starting a TTR strategy can be complex and may not suit your circumstances.
So it's a good idea to speak to a financial advisor.
To learn more about AustralianSuper's TTR Income account, visit australiansuper.com/TTRIncome or call us at 1300 300 273.
End transcript
How does transition to retirement work?
You might have heard of Transition to Retirement, a strategy to help you ease from working life to retirement. When you reach preservation age and you’re still working, you could consider a TTR strategy to access some of your super. But you might still be wondering how it works.
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What you need
To open a TTR Income account, you must be:
- between the ages of 60 and 64 and still working.
- an Australian citizen/permanent resident, a New Zealand citizen or hold an eligible retirement visa.
Opening a new TTR Income account
You open a new TTR Income account by moving at least $25,000 from your super account. It's important to note you can't add money to your TTR Income account once you've opened it.
You must also leave at least $6,000 in your super account so that it stays open. To find out more about the minimum balance for your super account, visit australiansuper.com/AccessYourSuperSave more
In the years before you retire, you could save more super and pay less tax by adding to your super from your before-tax salary (using salary sacrifice), if you’re 60 or over.
Work less
Working fewer hours as you get older can be a good way to ease into retirement and could mean you’re able to stay in the workforce longer than you otherwise would.
Use tax savings to supercharge your super.
TTR could help you put more into super while paying less tax1.
All you need to do is to pay some of your salary into super2. You can do this in two ways:
- by salary sacrificing3 through your employer, or
- by making an after-tax contribution4 and claiming a tax deduction.
You can then top up your take-home pay with regular payments from your TTR Income account. This means you could:
- pay less tax if you’re aged 60 or older,
- speed up your rate of saving.
TTR in practice: case studies
So, you know the basics of a Transition to Retirement Strategy, and how it can ease the progression from working life to retirement. Now let’s crunch the numbers and look at some examples of what it means to try and save more or work less with a TTR account.
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Work less: Tina’s case study
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. She supplements her working income with payments from her super through TTR.
Work less with TTR
Tina has just turned 60, and wants to work less, she earns $67,100 pa. before tax, or about $54,800 after tax. She looks forward to retiring at 65, and wants to keep adding to her super.
Assumptions
This example is provided for illustrative 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 calculation.
- Income figures have been rounded to the nearest $100
- Current tax rules for the 2024/25 financial year have been used
- This calculation applies to the first year of TTR only.
Next steps
- Get advice through our network of financial advisers5
- Learn more about TTR and how it could help you before you retire
- Open an account to get started today
Read more
- Transition to retirement (TTR)
For more information on TTR download the Transition to retirement with TTR Income brochure (PDF).
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Important Information
- Transition to Retirement (TTR) can be complex and isn’t suited to everyone. It’s a good idea to get financial advice before deciding if a TTR Income account is right for you. Government-prescribed minimums and maximums apply. For details view the TTR Income Product Disclosure Statement at australiansuper.com/pds
- If your total income is over $250,000, you will pay a higher tax rate.
- Salary sacrifice may affect some Government benefits and employee benefits. Consider getting financial advice before deciding if a salary sacrifice arrangement is right for you.
- Before adding to your super, consider your financial circumstances, contribution caps that may apply, and tax issues. We recommend you consider seeking financial advice.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.