June 22 2023

Are you transitioning to retirement?

Not everyone wants to go from full-time work to retirement all at once. Maybe you want to reduce your workload while retaining your quality of life, or you're approaching retirement and want to make a last-minute boost to your super. A Rest Transition to Retirement Strategy may be the middle ground you're looking for.
A blue dollar symbol on a green and white beach umbrella A blue dollar symbol on a green and white beach umbrella

What is a Transition to Retirement strategy?

Say you've reached your preservation age, but you aren't quite ready to retire. You may be eligible to open a Rest Pension 'Transition to Retirement' (TTR) account.

What is a preservation age?

Your preservation age is generally the earliest age you can access your super and it's calculated based on your date of birth.

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

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.



This strategy works best for those aged over 60, with a mid to high income that allows them to have more expendable income to place in their super.

Who’s eligible for a TTR?

You may wish to consider a Transition to Retirement Strategy if you have reached your preservation age and are:

  • Still in the workforce
  • Have existing super benefits
  • Want to boost your super
  • Are transitioning to retirement.

What are the restrictions on a Transition to Retirement account?

There are minimum and maximum withdrawal limits that apply to how much you can withdraw from a Rest TTR account. Currently, the minimum annual withdrawal rate is 4% and the maximum is 10% of your TTR account balance. You are generally not able to draw a lump sum from your TTR account.

A hand holding an egg


When you do retire, your Rest TTR account will convert into a Rest Retirement account. This will happen automatically once you have turned 65.

What to consider before opening a TTR account

Some things you should consider
  • How do you want to retire? is a TTR suitable for you and your retirement plan? What impact will it have on your superannuation balance through retirement, especially if you are receiving payments from your TTR account without making any additional contributions.
  • What are your income needs now? Some people might find their spending habits reduce later in life, and they can afford to salary sacrifice more into super without replacing the income. Others may realise they need more money and cannot afford to salary sacrifice as much.
  • Do you receive Centrelink payments? Government benefits may be impacted by a TTR strategy. Rest Advice can help you find out if you will face a change in circumstances.
  • Check on your life insurance: If you have insurance cover in your Rest super account, it will continue as long as you have funds in the account.

Rest Advice is all about helping you make the right decisions with your super and money. Get in touch to find out more.

Want to learn more?