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Transition to Retirement

If you are over 55 (and have reached your preservation age), the Australian Government has made it possible for you to access your super as an income stream while you are still working. This is called a Transition to Retirement (TTR) strategy. It’s designed to help you ease into retirement, but is also a great way to increase your super balance in your final working years.

Quite simply, a Transition to Retirement strategy changes the way you receive your income. Instead of receiving your income from one source (your employer), you receive income from two sources (your employer and your superannuation savings).

Three ways to use a TTR strategy

1. Income Booster

Access your super to top-up your current income. But be careful, this could eat into your savings.

2. Lifestyle Booster

Ease into retirement by reducing your working hours, without having to reduce your take-home pay. Plus, you save on tax.

3. Super Booster

Save more super without reducing your take-home pay.

  • Reduce your working hours
  • Maintain your current take-home pay
  • Save on tax.

Features and Benefits

Tax Benefits of a TTR Strategy

To access a TTR strategy you need to move some or all of your super into a retirement account (such as iQ Retirement). In most instances, the income you receive from your retirement account is taxed at more favourable rates than your salary:

  • Tax concessions – if you’re between preservation age and 59, your retirement account income is eligible for a 15% tax offset
  • Tax-free income – if you’re aged 60 or over, your income from your retirement account is tax free
Quick Tips about TTR
  • You must have met your preservation age
  • Tax breaks are great, and become even better one you reach age 60
  • You can withdraw up to 10% of your retirement account balance each year
  • You must withdraw a minimum amount of 4% of your retirement account balance each year
  • You cannot withdraw a lump sum from a retirement account

Your Preservation Age

Your preservation age is the minimum age at which you can access your super.

Date of Birth Preservation Age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
After June 1964 60