See how TTR works with these examples
Save more with TTR
Fred (60)
- Fred turned 60 and is keen to add to his $175,000 super balance.
- He earns $80,000 a year and is looking forward to retiring at 65.
Fred found that he could potentially add $16,000 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 $16,000 over five years
- Saved $15,100 in tax through a salary sacrifice arrangement
- But, paid an additional $150 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
$19,000
per year
Amount to transfer into TTR Income
$165,000
TTR Income payment amount
$12,900
per year
Benefits
Fred will:
- Grow his super balance.
- Lower his taxable income, giving him tax savings.
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
Salary sacrifice into super
Some of Fred’s current salary is paid directly to his super (salary sacrifice) which reduces his taxable income and saves tax.
$80,000
Current annual salary
−
− $19,100
$19,000
Salary sacrifice amount
=
= $40,900*
$61,000
New taxable income
$50,700
Fred's take-home pay
Boost super balance
This salary sacrificed amount is added into Fred’s super account, along with his employer contributions, making his balance grow faster.
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.
$50,700
Take-home pay amount
+
+ $12,500
$12,900
TTR Income payment in the first year
=
= $48,900
$63,600
Take-home pay
Review annually
As circumstances change, Fred reviews his TTR strategy annually to make sure it’s still right for him.
-
Assumptions