A Transition to Retirement Pension (TTR pension) allows you to access your super account balance while you continue to work. Part or all of your super is moved into a TTR pension account which you can then access as an income stream. A TTR pension works in the same way as any other pension, except that it cannot be cashed out as a lump sum until you are fully retired or reach a standard condition of release.
- A tax effective income stream with no restrictions on work hours or how much you earn
- Flexible payment options
- Receive income from your pension account while still making contributions to your super
Three TTR strategies to consider
Boost your super and pay less tax
Combining a TTR pension with salary sacrifice can be a clever strategy to save money on income tax and add a boost to your super as earnings in a TTR pension are taxed at 15% which may be lower than your marginal tax rate. Careful calculation of salary sacrifice amounts and pension payments could help you take advantage of this strategy without significantly reducing your take-home pay.
Cut your hours, not your income
With an extra source of income you can reduce your paid working hours while still receiving the same take home pay. You won't grow your super as fast but you'll have more free time to spend how you want to spend it.
Increase your income
A regular payment from your TTR account can give your lifestyle a lift or help pay off debts before you retire. Unlike the Retirement Pension, you can't take out a lump sum from a TTR account, but you can have peace of mind with a regular top up to your wallet.
The benefits you can achieve will depend on your salary, the income you need to meet your lifestyle needs, the amount in your super account and your age, as pension income is tax free once you are 60 or over.
We recommend you speak with a licensed Financial Planner to assess your personal financial situation and objectives before commencing a TTR pension.
To start a Transition to Retirement Pension with Media Super, you must:
- have at least $10,000 of super money to invest, and
- have reached your preservation age.