The Australian Government has made it possible for you to keep working while drawing on your superannuation. This process is called “transition to retirement” (TTR). This allows you to supplement your salary and maintain a comfortable lifestyle. You can also use the policy to save tax and boost your super before you retire.There are two ways to use a transition to retirement pension:

  • Keep working full-time and boost super
  • Reduce work hours and soften the drop in income

Once you hit preservation age (55 for many people), you can draw a pension from your super even if you are still working. If you are under age 65 and still working, you can transfer the sum of your super to a super pension account and withdraw between 4% and 10% of your balance throughout each financial year.

There are many benefits to setting up a transition to retirement:

  • Boost your super savings – your super will keep growing as your employer continues to make contributions into your superannuation account. Salary sacrificing some of your pre-tax income into your superannuation will further boost your savings.
  • Pay less tax – employer contributions and salary sacrificed contributions are taxed at a low rate when deposited into super.
  • Investment returns on a super pension account are not taxed, and when you turn 60, you won’t pay any tax on your pension income.

Even if you are under age 60 you will get a tax rebate on your pension income.Ease into retirement – if you want to reduce your work hours as a way of easing into retirement, taking a TTR pension from your super fund can supplement your employment income if it’s not quite enough to maintain your current lifestyle.Setting up your TTR account is a simple process. We complete all the necessary paperwork for you, we help you make any additional contributions, and we assist you in processing your withdrawals.If you have any further enquiries or to see if this is the right choice for you, please feel free to contact us for an obligation free consultation at or fill out the contact form below and one of our Advisors will get back to you.