Over 55? Want to work less without earning less?

A transition to retirement strategy could let you either fast track your super savings or change to part-time work – both without any drop in your take-home pay.

Transition to retirement (‘TTR’) is a powerful strategy available to people aged over 55. It lets you either:

  • boost your super balance while you’re still working without reducing your take-home pay, or
  • Work fewer hours without reducing your take-home pay. 

TTR therefore sounds almost too good to be true. Yet it works simply by taking advantage of the different tax rates inside and outside super.  

Can anyone start a TTR strategy?

No – you must have reached your ‘preservation age’ , which is set by your date of birth. If you were born before 1 July 1960 your preservation age is 55.

How does TTR work? 

TTR means you’ll have two accounts operating at the same time: 

  • a super account 
  • an allocated pension account, which you establish with some of your super savings and from which you then draw pension payments to top up your overall income. 

TTR is particularly good for people aged over 60 because then you receive your pension payments tax free. 

Think TTR might be for you? 

Step one is to have a chat with your financial adviser. 

While the benefits of TTR are clear, there are some tricky rules to negotiate around tax rates, super contribution limits and how much income you can draw from a pension account. But don’t worry – your adviser will navigate all this for you. 

Don’t have a financial adviser?

  • Visit a Suncorp Bank branch
  • Make an obligation-free appointment with a Suncorp Financial Planner 
  • Give us a call on 13 11 55 (and ask for ‘financial planning’)


Learn more about preparing for retirement 

Tags: Super