Transition to Retirement

As you get closer to your retirement age, a Transition to Retirement (TTR) strategy may help you prepare for retirement, by allowing you to access your super and benefit from tax concessions, as you ease out of full-time work.


Why should you have TTR?





The Transition to Retirement strategy is generally used for one of two reasons:

1. Grow your super savings for your retirement by creating and building wealth

2. Work less and maintain your income for a better lifestyle balance.

Once you assess which option would best suit you, the good news is, there are tax benefits to both of these choices.

for more information on the tax benefits of TTR, see the 'More super, less tax' section below.


What is TTR?

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  1.  How does Transition to Retirement work?

    With Transition to Retirement, you have two accounts:

    1. Your super (accumulation) account, which receives your employer contributions, before-tax (concessional) contributions, plus any investment earnings. 

    2. Your flexible retirement income stream account, which is set up using some (or all) of your super savings to give you a tax-effective income source. Please note should you choose to opt out of your TTR strategy at a later date, you can roll your money back into your accumulation account at any stage.

    find out more about Tax savings on investment earnings

    Function of a TTR strategy


  2.  More super, less tax

    Tax benefits of having a TTR income

    *excludes Medicare levy and Temporary Budget Repair levy

    There are major tax benefits of having a TTR income, including:

    1. Money you salary sacrifice into super is taxed at 15%*
    2. As a result of salary sacrificing into super, you reduce the income that goes into your bank account, which is taxed at your marginal tax rate.
    3. Any ‘lost’ income which you would have received prior to reducing your work hours, is topped up by receiving payments from your retirement income stream. If you are over 60, your income payments are tax-free, and if you are between preservation age and 59 years, you generally receive a 15% tax offset on your retirement income.
    4. PLUS, any investment earnings made in your retirement income stream, such as Telstra Super RetireAccess are tax free!

    find out more about Tax savings on investment earnings.

    *This tax is 30% for those with an eligible income over $300,000


  3.  Using TTR to build wealth

    A Transition to Retirement strategy can help you 'build wealth' by making the most of the tax benefits from a retirement income stream, while you are still working.

    You can reduce your overall tax bill and increase your super by heavily salary sacrificing an amount of your wage, while making up any 'lost' income through payments from your retirement income stream, as well as benefiting from investment returns being tax free.



  4.  Using TTR to work less 

    A TTR strategy can be used to achieve 'lifestyle balance' if you decide to work less, by getting paid the same amount of money if you choose to draw an income from your super.

    If you want to cut down your working hours (noting there are no restrictions on the hours you work), or move to a lower paid job, this could be an option for you.



  5.  Who is eligible for TTR?

    To benefit from a Transition to Retirement income stream you must:

    • have reached preservation age but under 65 and currently employed 
    • transfer some (or all) of your super to a TTR income stream such as Telstra Super RetireAccess.

    If you are 65 or over and have already retired, a retirement income stream might be for you.

    Ready to take the next step?

    Remember, a Transition to Retirement strategy requires careful planning! But if you are ready to apply, here are some steps you can take:

    use our handy checklist to make sure you’ve got everything you need
    download the Income Stream Application Telstra Super RetireAccess form.

    Get the right advice

    Telstra Super Financial Planning can provide you with expert guidance on your retirement planning options; give them a call on 1300 033 166 to discuss your advice needs.