Benefits of a TTR
The Transition to Retirement (TTR) strategy is generally used for one of two reasons:
- create and build wealth leading into retirement.
- work less and maintain your income for a better lifestyle balance.
Who's eligible for a TTR
To benefit from a TTR income stream you must:
- have reached preservation age but be under 65;
- be currently employed; and
- transfer some (a minimum of $10,000) or all of your super to a TTR income stream.
If you're 65 or over and have already retired, a retirement income stream might be for you.
How a TTR works
With a TTR strategy, you have two accounts:
- your super (accumulation) account: which receives contributions plus any investment earnings.
- your flexible retirement income stream account: which is set up using some (or all) of your super savings.
Benefits of a TTR income strategy
- pay less tax
- tax free investment earnings
- increase your savings
- top up your take-home pay.
A TTR strategy can help you build wealth while you are still working. Potential benefits include:
- reduce your tax bill
- increase your super by salary sacrificing an amount of your wage
- make up any 'lost' income through payments from your retirement income stream
- enjoy tax free investment returns.
A TTR strategy can be used to achieve a better lifestyle balance if you decide to work less. Potential benefits include:
- get paid the same amount of money by drawing an income from your super
- cut down on working hours (there are no restrictions on the hours you work)
- move to a lower paid job.
Ready to take the next step?
Remember, a TTR strategy requires careful planning! But if you're ready to apply, here are some steps you can take:
- do it yourself: download the Income Stream Application TelstraSuper RetireAccess form and set up a TTR
- let us help you: speak to an adviser from TelstraSuper Financial Planning to set up a TTR. Give us a call on 1300 033 166.
Get the right advice
TelstraSuper Financial Planning can provide you with simple personal advice over the phone on your retirement planning options; give them a call on 1300 033 166 to discuss your advice needs. Alternatively you can request a callback using our online form.Request a call