Skip to content

Are you thinking about retirement?

Imagine finishing work tomorrow. What would you do with all that time? Would you have enough money to live on?

If you’re approaching retirement but you’re not quite ready yet, here’s something to consider.

A Transition to Retirement (TTR) pension allows you to move into retirement on your own terms.

Transition to retirement (TTR)

There are two main ways the TTR works:

1. Reduce the number of hours you work and top up your income from your TTR pension.

2. Keep working the same hours, sacrifice some of your salary into your super to receive a tax benefit and top up your income with your TTR pension.


Case study*
Here’s an example of how a TTR works for a person who is still working and has reached age 60:

David is 60 years old and has accumulated $200,000 in his super account. He is fit and healthy and intends to continue full-time work for several years, aiming to maximise the amount of savings in his Club Plus Super account ahead of retirement. After receiving advice, he decides to commence a Club Plus Super (TTR) Pension. David’s income is $62,000 per year, and he has decided to ‘salary sacrifice’ up to the maximum amount allowed.

David is 60 years old and has accumulated $200,000 in his super account. He is fit and healthy and intends to continue full-time work for several years, aiming to maximise the amount of savings in his Club Plus Super account ahead of retirement. After receiving advice, he decides to commence a Club Plus Super (TTR) Pension. David’s income is $62,000 per year, and he has decided to ‘salary sacrifice’ up to the maximum amount allowed.

For the 2019/2020 financial year, the concessional contributions cap is $25,000 per year for everyone.

*TTR pensions are available once you reach your preservation age. You should be aware that tax is payable on pension payments prior to age 60, so your net position will be different than in the example above. For more information refer to the TTR factsheet.

First-hand experience
Cheryl, a Club Plus Super member since 1988, and her husband attended a Club Super Financial Planning seminar at St Mary’s RSL, they were thrilled to learn about how they could use a Transition to Retirement (TTR) strategy.

How financial advice can help

Matt Davey, certified financial planner with Club Plus Financial Planning, says he is surprised that more people are not aware of the tax benefits of a TTR and how it can boost their super while still working.

“The concept of a TTR is easy but the mechanics of it can trip you up if you don’t know what you’re doing,” says Matt. “That’s why people should seek financial advice before setting up a TTR. It’s not right for everyone – but for those who can take advantage of it, the strategy works!”

Is a TTR right for you?

Find out if a TTR could help you save tax and put more money into your super for retirement or if a TTR could allow you to reduce your working hours.

Make an obligation-free appointment with an accredited Club Plus Financial Planning financial planner here.

Cheryl talks about transitioning into retirement.

Financial planning advice is provided by Club Plus Financial Planning Pty Ltd (Club Plus Financial Planning), ABN 14 143 636 766 acts as a Corporate Authorised Representative #367058 of Link Advice Pty Ltd, ABN 36 105 811 836 (“Licensee”). The Licensee holds a current Australian Financial Services Licence #258145 and is responsible for the financial services provided to you. Club Plus Financial Planning is an associated company of Club Plus Superannuation Pty Ltd.