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Transition to Retirement
Use a Transition to Retirement strategy to help you prepare for retirement while you’re still working.
What is a Transition to Retirement strategy?
Why use a Transition to Retirement strategy?
Work part time with the same pay
Ease your way into retirement by reducing your working hours without affecting your income. A TTR strategy allows you to access up to 10% of your pension account balance a year by receiving regular income payments.
Pay less tax and boost your super
A TTR strategy could help reduce the tax you pay on both your income and any investment earnings you receive.
Employer contributions and salary sacrificed contributions are taxed at a low rate when they go into super. This is likely to be lower than your marginal tax rate. Investment earnings on transition to retirement accounts are also concessionally taxed, and become tax free once in the retirement phase, at which point you won’t pay any tax on your pension income. Even if you are under age 60 you will get a tax rebate on your pension income.
Super is meant to help you save to fund your retirement, so it is logical that restrictions apply to when you can get access to your money. To give your Super time to grow, it is preserved throughout your working life, and access is generally restricted until you reach retirement age or preservation age.
Your date of birth
If you have reached your preservation age, a TTR strategy allows you to access your Super benefits as a retirement income stream while continuing to work. Previously, you could only access your super once you turned 65 or retired but with a TTR strategy, you may be able to reduce your working hours without reducing your income.
How does a TTR strategy work?
You can start your Suncorp TTR pension by transferring some of your super accumulation account to a super account-based pension. You will need to leave at least a small balance in your accumulation account so that it remains open to receive ongoing employer super contributions, any voluntary contributions you make and cover any insurance premiums coming out of the account.
If you are younger than 65, you can draw down a TTR pension income of between 4% and 10% of the pension account balance each financial year, to supplement your employment income. You cannot withdraw the pension payments as a lump sum.
Your TTR pension balance can be rolled back into your super accumulation account at any time.
Please note: Accessing your super benefits may affect your eligibility for social security benefits.