Over 57 and Still Working?

Want more out of life? You could boost your super or reduce your work hours without affecting your take home pay.

Planning to retire?

Need to know your options?

If you’ve reached your preservation age (see the table below) and you’re still working, you may want to take advantage of a Transition to Retirement (TTR) account, which essentially allows you to ease into retirement without having to stop work.

Receiving a TTR income stream allows you to cut down on your working hours and supplement your income with your super. This means even though you’re working less, your take-home pay remains similar. It’s important to note that from 1 July 2017, the investment earnings of a TTR account will no longer be tax-exempt. Instead it will be taxed at 15% (in line with super generally).

However, once you reach age 60, the payments you receive from your TTR account are tax-free.

The effectiveness of a TTR account really depends on your own circumstances. If you’re unsure as to whether this would work for you, our team of financials advisers can help.

How REST Advice can help you

 Find out if a TTR can help you boost your super or reduce your work hours without affecting your take home pay.

Already have an existing TTR strategy and need to know more about how the recent changes to super impact you? 

We can help.

Find out more 

View the case studies below to see how a TTR strategy can be used to:

CASE STUDY 1:   How Michael can increase his super savings with TTR

At age 60, Michael realises he needs more super than the $150,000 he has currently saved for retirement, and he thinks that 65 would be a good age to retire.
CASE STUDY 2:  Using a TTR strategy to stop working full-time while maintaining income

Sue works full-time and since turning 60 has been considering her priorities: should she keep working full time or spend more time with her new grandson?  She's thinking about cutting back to 4 days a week, but is worried about her reduced pay packet.

Super and Retirement Calculator

See how a Transition to Retirement strategy can help you make the most of your super in the lead up to retirement.

Who does this suit?

A TTR account is suitable if you:

  • Have reached your preservation age; and
  • Are still in the workforce; or
  • Have existing super benefits; or
  • Want to boost your super; or
  • Are transitioning to retirement.

Your preservation age is the age in which you may access your super. This is dependent on the year you were born.

Date of birth 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
From 1 July 1964 60

What are the key things to know?

Taking out super

You can only withdraw your super from a TTR account as income payments.

Payment Limits

You can receive between a minimum of 4% and a maximum of 10% pa of your TTR account balance.

Keep your account open

Still working and want to remain insured? Keep your super account open so you maintain your insurance cover.

Contribution Caps

If you have a TTR account and decide to make salary sacrifice contributions to your super account, be mindful of contribution caps.

This website is provided by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003, trustee of Retail Employees Superannuation Trust ABN 62 653 671 394, of which REST Super, REST Corporate, REST Select, REST Pension and Acumen are part. It contains general advice that has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, consider its appropriateness and the relevant Product Disclosure Statement (PDS), which is available on this website.

Awards and ratings are only one factor to consider when deciding how to invest your super. Further information regarding these awards can be found at rest.com.au. Past performance is not an indicator of future performance. SuperRatings Pty Limited does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. For further information about the methodology used by Chant West, see www.chantwest.com.au