Transition to Retirement (TTR)

A hybrid approach to life after work

Access your super as you wind down from work

Transition to retirement strategies are much like having your cake and eating it too. The strategy changes the way you receive your income by allowing you to work while drawing on some of your super benefits as you ease into retirement. It's also a great way to increase your super balance in your final working years.

What is a TTR pension?

Quite simply, the TTR approach provides you with a few ways to access your super while you keep working. And it does this through a pension.

If you've reached your preservation age and still working, then you're good to go. Your preservation age is the minimum age you can access your super and will be between 55 and 60 depending on your date of birth.

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What are the benefits of TTR?

With more of us extending our working life, TTR strategies offer flexible solutions so you can ease into retirement on your own terms. Here's why people choose this type of pension.

  • Reduce your work hours and maintain your current income
  • Save more super without reducing your take home pay
  • Receive 15% tax offset if you're between preservation age and 59
  • Money you have drawn down is generally tax free after age 60
  • Stop your pension at anytime and go back to growing your super
  • Automatically continues as an account based pension when you retire or reach age 65

TTR pensions have some favourable benefits for some people but may be less attractive for others. So, what are the drawbacks? It's important to be mindful of:

  • Your contribution cap which impacts how much you can put into super
  • The fees associated with having both a super and pension account
  • How much you can withdraw each year is subject to a maximum limit
  • The more super you access in the TTR phase, the less you may have when you retire

What are the different TTR strategies?

There a number of approaches you can use to fit in with your preparations for retirement.

Work less and maintain the same income

If you are interested in reducing your work hours, you can use your super to supplement your lower income and maintain a comparable take-home pay.

Save more super without reducing your take-home pay

Continue full time work and make salary sacrifice contributions taxed at 15% instead of your individual income tax rate. You can then top up your reduced take-home pay with income from your TTR pension account.

Top up your income to improve cashflow

Keep working full time and use your super to top up your take-home pay by starting a pension account and drawing down an income stream. But be careful, this could eat into your savings.

How does a TTR work?

  1. Your super account remains open and your employer continues to pay contributions into your account. You may decide to top up your super as well.
  2. A lump sum amount is transferred from your super into a TTR pension account
  3. You choose the frequency of your regular payments and the amount you would like to withdraw each year.
  4. There are limits to the amounts you can withdraw each year, depending on your age.
  5. You choose the investment option for your balance.
  6. But you cannot withdraw any lump sum amounts.

How do I start?

For VISSF members, when you reach preservation age, a pension tab will appear within your Member Online dashboard. Simply log in and click on the Pension tab. From there, follow the prompts to open your TTR pension account.

How do I manage my account?

Once your TTR pension account is set up, you can manage everything through Member Online or the VISSF mobile app. From reviewing beneficiaries, making withdrawals, adjusting your payment frequency and amount, or switching your investment options, you will have total control 24/7.

Is TTR a good fit for me?

TTR strategies can be complicated and starting an account comes with some conditions. To find out if a hybrid approach is right for you, schedule a free telephone advice consultation.

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How long will my super savings last?

Examine your numbers and play out different scenarios with our helpful retirement calculator.

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