Transition to Retirement

A retirement strategy for people who have reached their preservation age and are still working

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1800 207 754 Mon- Fri 8am – 6pm

What is it and how does it work?
Did you know that when you reach preservation age you are able to withdraw from your super balance as an income stream, even if you are still working?

With a TTR strategy, you have two accounts:

A super account - to receive contributions from your employer and your pre-tax contributions.

A pension account - set up with some or all of your super savings to provide pension payments that top up your income.

Please note: You can't access money from your Super account (until retirement age) but you can from a Pension account.
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 transition to retirement strategy allows you to access up to 10% of your pension account balance a year by receiving regular income payments.

Diana uses a transition to retirement strategy to work part time.

Diana is aged 60 and earns $70,000 per year. Her net income after tax is about to drop when she reduces her working hours to three days a week part time. Instead of reducing her current spending, Diana decides to use a TTR strategy to top up her salary with an income drawn from her super.

Diana has gone from working five days a week to three without any reduction in her take-home pay.

Pay less tax and boost your super

A transition to retirement strategy can help reduce the tax you pay on both your income and any investment earnings you receive.

Tell me how
Employer contributions and salary sacrificed contributions are taxed at a low rate when they go into super. This is likely to be lower that your marginal tax rate. Investment returns on a super pension account are not taxed, and when you turn 60, 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.
David uses a transition to retirement strategy to boost his super.

David is aged 56 and is looking to boost his $100,000 super through salary sacrifice. He works full time as a handyman, earning $60,000 a year before tax. He is looking forward to retiring at age 65 and spending more leisure time with his family.

After talking to Suncorp, David was able to implement a strategy that added around $30,175* to his retirement savings over ten years. All while his take-home pay stayed the same.

* 2016/17 tax rates inclusive of Medicare levy; balanced investment returns of 6.3% pa (before tax and fees); super gain figure is expressed in future dollars.
How to apply or find out more

A transition to retirement strategy is offered through both of our superannuation products;
Suncorp Everyday Super™ and Suncorp Brighter Super™.

Everyone’s circumstances are different, so you should discuss the best option for you with one of our super specialists or contact your financial adviser.

Call our experts for a free chat, mon-fri 8am-6pm
13 11 55

Your preservation age

Your preservation age depends on when you were born (see below). It determines when you can access some of your benefits. Once you’ve reached age 60 and retired, your super benefits can be withdrawn tax-free as either a pension or lump sum amount.

Your date of birth Your preservation age
Before 1 July 1960 55
1 July 1960 - 30 June 1961 56
1 July 1961 - 30 June 1962 57
1 July 1962 - 30 June 1963 58
1 July 1963 - 30 June 1964 59
1 July 1964 onwards 60