Top 10 tips for starting a Transition to Retirement account

Here are 10 tips to help explain how TTR works and get you started.

1. You can access super while still working 

   If you’re aged 60 to 64, a TTR strategy allows you to draw income from your super even while you’re still working. 

2. There are two main ways to use a TTR account  

   Save on tax while growing your super – Salary sacrifice into your super account while drawing income from your TTR account. Salary Sacrifice contributions are taxed at 15%, which may be lower than your income tax rate.

   Or 

   Reduce your work hours and maintain your income – Use TTR payments to top up your income while working fewer hours. 

   See how TTR works in real life

3. You’re probably eligible if you’re aged 60-64

   You need to be aged 60 to 64 and still working (full-time, part-time, or casual) to take advantage of a TTR account.

   There’s a minimum amount you need to transfer to a TTR account. For example, when opening a CSCri Transition to retirement income stream you need to transfer at least $20,000. 

4. Making additional contributions helps you save

   Making additional concessional contributions to your super e.g. by salary sacrificing, helps to offset the amount you may want to withdraw from your TTR account. These contributions are taxed at 15%, which may be lower than your marginal tax rate—helping you save on tax while growing your super.

5. Keep your super accumulation account open

   Before you open a TTR account, make sure you leave enough funds in your accumulation account, e.g. your PSSap account, to:

   Cover insurance premiums (if applicable).

   Retain your account to receive employer contributions, your own contributions, or rollovers from other super funds  

6. There are income limits 

   You need to withdraw between 4% and 10% of your TTR account balance each financial year. These limits are set by the ATO and help preserve your retirement savings.

7. Payments must be taken as regular payments 

   Such as fortnightly, monthly or quarterly. You can’t withdraw separate lump sum amounts from a TTR account.

8. You can keep growing your super

   Your employer will continue to make Super Guarantee (SG) contributions to your super account while you’re still working, even if you reduce your work hours.

   You can also make voluntary contributions as long as you meet the relevant eligibility requirements.

9. Government benefits may be affected

   Starting a TTR income stream account may impact your or your partner's government benefits. Check with Services Australia.

10. There are added benefits when you turn 65

    When you turn 65, your TTR account will automatically convert to a standard retirement income account with added benefits like zero tax on investment earnings.

If you’ve reached age 60 and still working, a TTR strategy could work for you. 

Seek further information or advice 

In just 30 minutes, a CSC Super Specialist can explain how TTR works and give you clarity on what you can do. If you’re a current member of CSC, it’s included in your membership at no extra cost to you. 

Book your appointment now

Speak to a financial planner to tailor a strategy to your personal circumstances. 

Apply online 

Learn more about CSCri Transition to Retirement and apply online.

Before making a decision, make sure you’ve read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) at csc.gov.au/pds  

Keep learning about TTR