Transition to Retirement Pension: A Flexible Path to Financial Freedom

Planning for retirement doesn’t have to mean giving up work completely. A Transition to Retirement Pension (TTR) offers the flexibility to ease into retirement while maintaining financial security. This strategy allows individuals nearing retirement age to access a portion of their superannuation as a regular income stream while still working.

What is a Transition to Retirement Pension?

A Transition to Retirement Pension is a financial strategy designed for Australians who have reached their preservation age (usually between 55 and 60, depending on your date of birth). It enables you to:

Access your superannuation as a regular income stream.
Reduce your working hours without reducing your overall income.
Potentially benefit from tax savings.

Key Benefits of a TTR Pension

Flexible Income Support
Continue working part-time or reduce your hours while supplementing your income with your super.
Tax Efficiency

Earnings on the investment supporting your TTR pension are tax-free.
If you’re over 60, your TTR income is tax-free.

Boost Your Retirement Savings
Combine a TTR pension with salary sacrificing to maximize your super contributions while minimizing tax.

How Does It Work?

Set up a TTR pension by transferring part of your super into an income stream account.
Decide how much income to draw, keeping within the government’s set limits (currently 4-10% of your account balance per financial year).
Continue contributing to your super if you're still working, helping to grow your retirement nest egg.

Is a TTR Pension Right for You?

A TTR pension is ideal if:

You want to transition to part-time work without financial stress.
You’re looking for ways to reduce your taxable income.
You’re focused on building your retirement savings while maintaining flexibility.

Seek Expert Advice
Navigating a Transition to Retirement Pension can be complex. Speak with an experienced financial planner like James Hayes to create a TTR strategy tailored to your unique goals and circumstances.