A Transition to Retirement Pension is a way to access your superannuation savings before you officially retire. Whether you want to:
- Cut back on work hours while maintaining your income, or
- Continue working full-time and unlock extra cash flow…
…a TTR strategy allows you to keep earning while enjoying the freedom to live more.
And the best part? Once you hit 65 or fully retire, your TTR automatically switches to an account-based pension—giving you even greater flexibility and tax benefits.
How Does a TTR Pension Work?
It’s simple: once you’ve reached your preservation age (see the chart below), you can start drawing from your super without giving up your job.
| Your Birthday | Preservation Age |
| Before 1/7/1960 | 55 |
| 1/7/1960 – 30/6/1961 | 56 |
| 1/7/1961 – 30/6/1962 | 57 |
| 1/7/1962 – 30/6/1963 | 58 |
| 1/7/1963 – 30/6/1964 | 59 |
| After 30/6/1964 | 60 |
Why Should You Consider a TTR Pension?
Here’s why thousands of Australians are leveraging a TTR strategy:
1. Boost Your Income While Working Less
Want to reduce your work hours without reducing your paycheck? A TTR pension lets you top up your income while you ease into retirement.
2. Supercharge Your Super While You Work Full-Time
Continue working full-time and use the extra cash from your TTR pension to make tax-effective salary sacrifice contributions to your super.
3. Tax Benefits That Save You Thousands
If you’re over 60, your TTR pension payments are completely tax-free, while investment earnings remain taxed at just 15%—far lower than most marginal tax rates.
4. Enjoy More Free Time and Flexibility
Work-life balance doesn’t have to wait for retirement. A TTR pension helps you take back your time without sacrificing your financial goals.
What’s the Catch?
While a TTR pension offers incredible benefits, it’s not without trade-offs. Here’s what you need to consider:
- Less Money for Retirement: Drawing from your super early can reduce what’s left for your full retirement. Make sure your strategy aligns with your long-term goals.
- Impact on Government Benefits: A TTR pension might affect your eligibility for Age Pension or other government payments.
- Life Insurance Changes: Does your super fund’s insurance cover change when you start a TTR? It’s worth checking.
Transition to Retirement Pension Rules You Need to Know
- Maximum Withdrawal: You can only withdraw up to 10% of your account balance each year. For example, a $100,000 balance means a $10,000 annual limit.
- No Need to Cut Hours: You can start a TTR pension even if you’re still working full-time.
Is a TTR Pension Right for You?
Ask yourself these questions:
- What’s your current super balance, and will it last through retirement?
- Does your super fund allow TTR pensions?
- How much income do you need to maintain your lifestyle?
- Are you better off waiting for an account-based pension at retirement?
If you’re unsure, we can help.
Why Choose MW Group to Help You with Your TTR Strategy?
Don’t risk your future with guesswork. At MW Group, we’ll craft a tailored TTR strategy that works for you, ensuring you:
- Maximise your income while protecting your retirement savings.
- Avoid costly mistakes with government benefits and taxes.
- Enjoy peace of mind knowing you’re making the best decision for your future.
Take the First Step to Your Best Retirement Today
📞 Book your free strategy session now. Our team of consultants will show you how to make the most of a TTR pension and answer all your questions—at no cost to you.
Don’t wait until retirement to start living your best life. Click here to book your call today and let’s design a future where you can have it all: more freedom, more income, and more time.
This is your chance to take control of your financial future. Let’s make it happen.
Avoid Excess Contributions Tax and Keep More of Your Hard-Earned Super
Contributing to your super is one of the smartest ways to secure your financial future. But if you’re not careful, exceeding the contribution caps can lead to excess contributions tax—a costly mistake that can spiral out of control fast.
Here’s the good news: with the right strategy, you can maximise your super contributions while avoiding these hefty penalties. Let’s break it down so you can contribute with confidence and grow your retirement savings without unnecessary headaches.
