Transition To Retirement (TTR)

Have you been considering retirement, but you’re just not sure where to start or if you can afford to retire? 

Your retirement age is not set in stone. Once you’ve met your preservation age, you can choose when and how you’d like to retire. Understanding where you are financially, both now and in the future – whether it be in 5, 10 or 20 years’ time is very important and can set you up for a good retirement.

Would you like to reduce your working hours and supplement your income?

You can access the funds within your Super account as a Transition to Retirement (TTR) Pension even though you are still working. To do this you have to meet the preservation age, which is the minimum age set by the Government at which you can access your Super. Preservation age is dependent on what year you were born.

Date of Birth Preservation Age
Before July 1960 55 years
After June 1960 – Before July 1961 56 years
After June 1962 – Before July 1962 57 years
After June 1962 – Before July 1963 58 years
After June 1963 – Before July 1964 59 years
After 1 July 1964 60 years

Paving the way to retirement

If you’re looking to cut back a little and reduce your work hours from full time to part time, (TTR) Transition to Retirement Pension may be a good option to consider. You can use a TTR Pension to bridge the gap in the reduced income.


Reduce your work hours while still maintaining your current lifestyle

Access funds in Super to supplement your income

Enjoy the tax benefits while maximizing your contributions
(Super is only taxed at 15%)

How transition to retirement (TTR) works

A TTR Pension gives you access to 4-10% of your Super balance. You can choose how much pension you’d like to withdraw based on your current standard of living. * There are a couple of prerequisites you need to meet when establishing a TTR Pension; you should…

  • Be employed in some capacity
  • Be able to still make contributions to your Super
  • Have met your preservation age, explained in the table above

An important consideration when commencing a TTR Pension is that if you draw down on your Super balance too early in life, it could impact the retirement lifestyle you have later. However, in saying this, you may have the ability to make both concessional and non-concessional contributions to your Super funds.

Financially preparing yourself for the road ahead is always a good idea

By making additional contributions to Super, you can help boost your balance prior to retirement while at the same time potentially lower your marginal tax rate. You can choose whether you want to make concessional (before tax) or non-concessional (after tax) contributions. To learn more about concessional and non-concessional contributions, read our blog post on Making Superannuation Contributions. 

This information has been prepared by IFBA Pty Ltd T/as Pacific Finance Australia ABN 60 108 622 644 Australian Credit Licence No. 391682. Pacific Finance Australia accepts no obligation to correct or update the information or opinions in it. This advice is general and does not take into account your personal objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.