Transition to retirement

Who is it available to?

If you've reached your preservation age but would like to continue working, you may be able to open a Transition to retirement (TTR) account. A TTR account will provide you with income payments. Some people choose to reduce their working hours and use TTR income payments to make up for their salary shortfall; others use a TTR account as part of a tax-saving strategy. To see if you’re eligible, you'll need to know your preservation age:

How does it work?

A TTR account must pay you an income payment at least once in each financial year.

If you're aged over 60, your income payments will be tax-free. Tax will generally apply for those aged under 60. In some cases, a tax offset may be applicable. For more information, download our Fees, costs and tax guide.

What are the benefits?

Many who decide to move to part-time work arrangements open a Transition to retirement (TTR) account. The income payments they receive help to supplement their reduced salary.

A TTR account can also help provide tax benefits for people over 60 who continue to work full time. While receiving an income from your TTR account, you could structure your super contributions to maximise your savings and reduce tax, without reducing your take-home pay.

Our Transition to retirement fact sheet has some case studies that detail how this strategy works. It can get complicated, so if you're unsure, consider seeking advice.