How does it work?
Depending on your needs the Transition to Retirement strategy works in a few different ways.
Option 1: You could scale back your work, for example from five days a week to four, while supplementing the fifth day's income from your TTR account. One of the benefits of this approach is you could find more work life balance while still receiving employer and/or voluntary super contributions.
Option 2: You may want to make more contributions to your super in the last few years of your working life. With a TTR strategy, you could arrange with your employer to salary sacrifice more into super, while drawing an income from your TTR account. This may allow you to boost your super balance and reduce tax while maintaining the same income.