How a TTR plan can smooth your path to retirement
A Transition to Retirement (TTR) plan lets you access some of your retirement savings:
- while you're still working;
- when you've reached your preservation age.
You can get regular payments from your retirement savings while keeping the rest of your money invested. You can start a TTR plan by opening a TTR Pension account alongside your regular retirement savings. This can help you save more before retiring or allow you to work less while still getting paid.
How a TTR works
A TTR account operates alongside your retirement savings. You fund it with a portion of your existing retirement fund. This account allows you to receive periodic pension payments to supplement your income. If you change your mind, you can return your TTR money to your regular retirement savings anytime you like.
Using a TTR to work less
A TTR plan offers a strategic way to gradually reduce your work hours as you approach retirement without significantly impacting your lifestyle. It allows you to continually contribute to your super while simultaneously drawing from it to supplement your income. This approach eases you into retirement at a pace that balances work and leisure.
Using a TTR to pay less tax
Here's how it works. You put more of your pay into your regular retirement savings through salary sacrifice. This means you have less money in your take-home pay. But you replace that money and top up your income with payments from your TTR plan. Ultimately, you could have the same money while paying less taxes.
Here's how it can benefit you:
- Tax-Free income: If you're 60 or older, the money from your TTR plan is usually tax-free.
- Boost your salary: You can use TTR payments to increase your take-home pay to work less or save more.
- Grow your savings: Your retirement savings continue growing even when you work.
Our TTR Pension is for people who are still working, have reached a certain age, and want to save on taxes or get extra income from their retirement savings. Here are some important details:
|How often you get paid
|You can get paid twice a month, once a month, every three months, every six months, or once a year.
|You can pick how much income you want within certain limits.
|We offer 11 ways to invest your money, including a self-managed option.
|Taking out money
|You can't take out a lump sum; you can only get regular payments up to a specific limit.
|Closing your account
|You can switch your TTR account to your regular retirement savings at anytime.
Setting up a TTR account
Here's what you need to do:
- Make a plan: Talk to our Client Service Managers to create a tailored plan.
- Read the Pension Product Disclosure Statement: Download it here.
- Fill out the application: If you're under 60, you must also complete a form from the Australian Taxation Office (ATO).
- Transferring money: If you're moving money from another fund, you may need to complete a transfer form. Once we get all the transfers, your TTR account will become your pension account.
- Submit your documents: Including your certified ID.
Getting started with your TTR account
Once we approve your application and set up your account, we'll send you a summary.
Your income payments will go directly into your bank account per your chosen schedule.
It's essential to review your plan yearly to ensure it still fits your goals.
Contact our Client Service Team
As a member, you can get personalised support from our Client Service team at no cost or obligation. They can provide general information and limited personal advice on a TTR and how it affects retirement savings.