Transition to Retirement

A TTR account is a second kind of account (an account-based pension) which you can have within super. Your regular super account which your employer contributes into is called an accumulation account, this accumulates in value through your working life.

A TTR account isn’t designed to accrue value over time. You start your TTR with a lump sum from your accumulation account. You can then draw down regular pension payments from your TTR as a second source of income. So, you could be receiving regular monthly payments in to your bank account, from your TTR. You can’t add any more money to it – and neither can your employer – so while you’re working, your employer will keep making regular SG payments into your normal accumulation account.

When you open a TTR account, your money is still invested, and it’s still considered superannuation, however (with limitations) you can start to draw down in to your bank account. A TTR pension can be rolled back into your super accumulation account at any time, you’re not locked in for a particular term. 

As you approach retirement you might like to reduce your work hours without reducing your income. A TTR pension can be used to supplement your income if you decide to reduce your work hours. 

This could mean less money in retirement. If you start drawing down your super early it may impact the lifestyle you can achieve through retirement.

The tax treatment of super & TTR accounts means that there can be potential for tax concessions. There are a few steps in the process – essentially you put more of your wage in to your regular super account through salary sacrifice, which means you have less in your pocket. You replace that money with payments from your TTR account. You can end up with the same amount of money, while paying less tax. 

Fees & costs of a TTR account

legalsuper works hard to keep fees and costs low. Our sole purpose is to maximise the retirement savings of our members. We do not pay commission to agents and are an ‘all profits for members’ fund. To find out more about legalsuper's Transition to Retirement Pension Fees and charges go to Retirement and TTR Pensions - Fees and charges.

We recommend obtaining advice when establishing your TTR account & strategy. Face to face, online or over the phone, our professional Client Service Managers can give you the perfect game plan for your super.

1. Get your game plan. Speak to your adviser, or with one of our Client Service Managers to establish a plan.
2. Download and read the legalsuper Pension Product Disclosure Statement
3. Complete the Pension membership application form at the back of the Pension PDS. If you are under age 60, you must also complete and attach to the application form a TFN Declaration form from the Australian Taxation Office (ATO).
4. If you are transferring monies from another fund, you may also need to complete a legalsuper Request to transfer form, to consolidate your superannuation into your legalsuper superannuation account. Your legalsuper superannuation account will be converted to your legalsuper pension account once all transfers are received

1. Submit your paperwork with certified ID as detailed on the application form.
2. Once your application is accepted by legalsuper, and your account is established, you will receive a summary that shows the details of your pension.
3. You will receive your income payments by Electronic Funds Transfer (EFT) to your bank, building society or credit union account, to your nominated schedule.
4. Review your strategy annually.