What is a transition to retirement pension?
Access some of your super while you’re still working.
What is a TTR pension?
A transition to retirement (TTR) pension allows you to supplement your income by allowing you to access some of your super once you’ve reached age 60.
What are the benefits?
- Cut back your working hours and replace lost income with a TTR pension payment.
- TTR pension payments are tax-free.
- Investment earnings are generally taxed at a maximum rate of 15%.
How do they work?
- A TTR pension must generally be taken as pension payments only.
- For TTR pensions in the pre-retirement phase, opens in new window, the minimum pension payment is 4% up to a maximum 10% of your account balance as at 1 July of each financial year or the value from the date your TTR pension started in that financial year.
Important things to consider
- You’ll need to keep a super account open to accept employer contributions (or any other contributions) as these can’t be contributed directly to a pension account.
- TTR pensions don’t hold any insurance cover. This means you may want to keep any personal insurance you have connected to your super account.
- Your TTR pension will become a retirement phase income stream once you permanently retire, reach age 65 or meet another relevant condition of release. It will also be included in your transfer balance cap at that time.
What next?
For more information please visit Australian Taxation Office (ATO, opens in new window).
Got a question?
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General advice and information only
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Tax disclaimer
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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