
See how a Transition to Retirement account can work for you
Case Study 1: Jerry increases his super savings with a TTR
Existing | With a Rest Pension TTR account | |
---|---|---|
Salary | $60,000 | $60,000 |
Less Salary Sacrifice | - | $19,708 |
TTR Income | - | $13,600 |
Taxable Income | $60,000 | $40,292 |
Tax | $8,788 | $3,535 |
Medicare Levy | $1,200 | $806 |
Tax Offsets* | $100 | $560 |
Total Tax | $9,888 | $3,780 |
Net income Received | $50,112 | $50,112 |
Salary | |
Existing | $60,000 |
With a Rest Pension TTR account | $60,000 |
Less Salary Sacrifice | |
Existing | - |
With a Rest Pension TTR account | $19,708 |
TTR Income | |
Existing | - |
With a Rest Pension TTR account | $13,600 |
Taxable Income | |
Existing | $60,000 |
With a Rest Pension TTR account | $40,292 |
Tax | |
Existing | $8,788 |
With a Rest Pension TTR account | $3,535 |
Medicare Levy | |
Existing | $1,200 |
With a Rest Pension TTR account | $806 |
Tax Offsets* | |
Existing | $100 |
With a Rest Pension TTR account | $560 |
Total Tax | |
Existing | $9,888 |
With a Rest Pension TTR account | $3,780 |
Net income Received | |
Existing | $50,112 |
With a Rest Pension TTR account | $50,112 |
Existing | With a Rest Pension TTR account | |
---|---|---|
Super | ||
Super starting balance | $175,000 | $5,000 |
Super Guarantee | $6,900 | $6,900 |
Salary Sacrifice | - | $19,708 |
Earnings | $8,673 | $746 |
Less Contributions and Earnings tax | $1,729 | $4,051 |
TTR | ||
TTR Start Balance | - | $170,000 |
Income Draw Down | - | $13,600 |
Earnings from TTR (net of tax) | - | $7,357 |
Total End Balance (Super + TTR) | $188,844 | $192,060 |
Super | |
Existing | |
With a Rest Pension TTR account | |
Super starting balance | |
Existing | $175,000 |
With a Rest Pension TTR account | $5,000 |
Super Guarantee | |
Existing | $6,900 |
With a Rest Pension TTR account | $6,900 |
Salary Sacrifice | |
Existing | - |
With a Rest Pension TTR account | $19,708 |
Earnings | |
Existing | $8,673 |
With a Rest Pension TTR account | $746 |
Less Contributions and Earnings tax | |
Existing | $1,729 |
With a Rest Pension TTR account | $4,051 |
TTR | |
Existing | |
With a Rest Pension TTR account | |
TTR Start Balance | |
Existing | - |
With a Rest Pension TTR account | $170,000 |
Income Draw Down | |
Existing | - |
With a Rest Pension TTR account | $13,600 |
Earnings from TTR (net of tax) | |
Existing | - |
With a Rest Pension TTR account | $7,357 |
Total End Balance (Super + TTR) | |
Existing | $188,844 |
With a Rest Pension TTR account | $192,060 |
Case study 2: Elaine cuts work hours and maintains her income with a TTR
Option 1 - Current situation | Option 2 - Cut back hours to four days | Option 3 - Cut back hours to four days and start Rest Pension TTR account with $150,000 | |
---|---|---|---|
Salary | $50,000 | $40,000 | $40,000 |
TTR payment | - | - | $7,175 |
Total Income | $50,000 | $40,000 | $47,175 |
Taxable Income | $50,000 | $40,000 | $40,000 |
Less Tax (total tax liability)* | $6,538 | $3,713 | $3,713 |
Net Income | $43,462 | $36,287 | $43,462 |
Super & TTR Balance after 5 years | $228,555 | $222,565 | $192,959 |