TelstraSuper

FAQs

• What is a transition to retirement (TTR) strategy?
  Transition to retirement is a financial strategy for drawing part of your super before your retirement age. If you are looking to wind back working hours or boost your super in the lead-up to retirement, applying for a TTR pension may be the answer.
• What is the difference between TTR and account-based pension?
  The difference between a TTR pension and an account-based pension is that the former has been designed to provide an income stream while you are working; the latter has been designed to provide an income stream once you have retired.
• How much can I receive from a TTR account?
  You can choose how much you want to receive (up to 10% of your TTR account balance annually) and how often you receive your stream of income payments i.e., twice-monthly, monthly, quarterly, or annually.
• What happens to TTR when you turn 60?
  When you reach age 60, payments from your TTR income account become tax free. You have the potential to salary sacrifice if you are still working to pay less income tax, while topping up your pay with a tax free TTR income stream.
• And what happens to TTR when you turn 65?
  When you turn 65, we’ll automatically change your TTR income stream to a Retirement income stream as you’ll have satisfied a condition of release. Turning 65 is generally an opportune time to make sure that your pension settings still suit you, using the tax-free retirement income stream.
• What are the investment options with a TTR?

  We offer a range of investment options to suit your investment goals, please refer to the RetireAccess Product Disclosure Statement PDS or click here.

• How much can I withdraw from a TTR account?
  You can withdraw any amount that is between your minimum annual payment of 4% of your 1 July account balance and maximum annual payment amount of 10%. The maximum annual payment amount of 10% of your 1 July account balance applies until you satisfy a condition of release, for example turning 65 and are moved into a Retirement income stream account.
• What age can I start a TTR?
  The age may vary depending on your birth year, so it is essential to check your preservation age.
• Is a TTR tax free?
  You do not pay tax on your TTR income payments. Investment earnings are generally taxed at a maximum of 15% until you meet a condition of release. This is lower than your normal income tax rate.
• Can I still work full-time and benefit from a TTR?
  Yes, you can work full-time and at the same time draw an income from your TTR income stream.
• Are there any disadvantages of TTR?
  TTR pays funds from your retirement savings so it can reduce the amount you have available when you finally retire. However, you can set up your TTR to lift your retirement savings. Contact us on the number below if you’d like advice about how to do this.
• How often can I get paid?

  Choose the timing that suits your lifestyle. You can choose to be paid twice-monthly, monthly, quarterly or annually.

  Your payments will be made on or before the following days:

  Twice-monthly: 14th & 28th day of each month
  Monthly: 28th day of each month
  Quarterly: 28th March, 28th June, 28th September & 28th December
  Annually: 28th day of the month you nominate

  If your payment date falls on a public holiday or weekend, your payment will be processed on the previous day.

  Once processed, your payment will take a minimum of three business days to be in your Australian bank account (depending on your financial institution’s processing times).