Transition to Retirement
Transition To Retirement
Life after work in sight? Have you been thinking about how you could work less, or potentially boost your super balance?
Over 60? Use our TTR strategy to make the most of your super.
A Transition to Retirement (TTR) strategy combines the Triple S benefit of no annual salary sacrifice contributions cap* with a Super SA Income Stream account.
The top two reasons members take advantage of a TTR strategy are to work less or to boost their super. Read on to discover how.
- Reduce your working hours
- Access your super as an Income Stream
- Supplement your take-home pay during this period
Boost your super
- Salary sacrifice into your Triple S account
- Access your super as an Income Stream
- Supplement your take-home pay
- Could help reduce your tax
- Open a Super SA TTR Income Stream account and transfer at least $30,000 from your Triple S account.
- Your employer continues contributing money to your Triple S account. If you’re using TTR to boost your super, you’re also making salary sacrifice contributions.
- To top up your take home pay you can access up to 10% of your TTR balance.
Watch this video with Super SA’s Head of Advice, Allan Ward to learn how to access your super early using an Income Stream and TTR strategy.
Boost your super and maintain your income
Combine a Super SA Income Stream with salary sacrifice and you could boost your super without reducing your take home pay.
Work less, but maintain your income
Reduce your work hours and supplement your take home pay from a Super SA Income Stream.
No cap on annual salary sacrifice contributions with Triple S1
Salary sacrifice contributions are taxed at 15%, typically less than most members' marginal tax rate.
Get your income payments when it suits you - fortnightly, monthly, quarterly, half-yearly, or yearly.
Keep your money working
The money you transfer across Triple S to your Super SA Income Stream stays invested.
From age 60, income payments from super are tax-free.
And it gets even better at age 65
When you meet a superannuation condition of release such as retiring or turning age 65, your transition to retirement account automatically moves into the ‘retirement phase’ – yes, even if you’re still working – which means investment earnings are tax-free, there are no limits on lump sum payments and the 10% limit on your annual payments is removed.
TTR in action
See how you could boost your super without reducing your net income.
Here’s a case study that illustrates the benefits you could gain by taking advantage of TTR.
Frequently asked questions
Am I eligible for TTR?
To be eligible for TTR:
- You must have reached your Commonwealth Government preservation age
- Your Triple S account must have a balance of at least $36,500
- You must not have received a Transition to Retirement benefit this financial year from the Triple S account
- You will need to roll at least $30,000 of your super, and keep a minimum of $6,500 in your Triple S account.
You may also choose to continue to work – but you can work less hours if you wish (subject to employer approval).
Before you make any decision about your finances, it’s important to consider your situation and your plans for the future. We recommend that you seek professional financial advice to check whether a TTR arrangement is right for you.
How do I apply for TTR Income Stream?
If you would like to start a TTR, you need to:
- Read the TTR section in the Triple S Reference Guide for details of eligibility criteria
- Complete Transfer your super form and a Super SA Income Stream application form which is available in the Super SA Income Stream PDS.
We aim to process your application within 10 business days of receiving your completed application and relevant documentation.
You should read the Super SA Income Stream PDS to understand the features of this product and the requirements to establish a new income stream account. You will also need to complete the application forms at the back of the PDS (and any other requirements) for Super SA to establish your new Income Stream.
Can I open an Income Stream account for my spouse or begin a TTR for them?
In addition to opening an Income Stream with Super SA as part of your own Transition to Retirement (TTR) strategy, your spouse may also be eligible to set up a spouse account in the Super SA Income Stream for themselves2.
For your spouse to be eligible for a TTR:
- You must be a member of an eligible scheme
- Your spouse must have reached your Commonwealth Government preservation age
- Your spouse must roll in at least $30,000 to Super SA.
Before you make any decision about your or your spouse’s finances, it’s important to consider your situation and plans for the future. We recommend that you seek professional financial advice to check whether a TTR is right for you.For further details please call the Member Services team on 1300 369 315 to discuss.
What’s my Commonwealth Preservation Age?
Commonwealth Government Preservation Age is different to the preservation age that applies within the Triple S Scheme. Your Commonwealth preservation age is when you can first access your super for Transition to Retirement (TTR) purposes.
Your Commonwealth preservation age differs from person to person and depends on your date of birth.
Please find below the preservation age for all age groups and when you can access your super via TTR.
Date of birth
Before 1 July 1960
1 July 1960–30 June 1961
1 July 1961–30 June 1962
1 July 1962–30 June 1963
1 July 1963–30 June 1964
1 July 2022
After 30 June 1964
1 July 2024
Why do I need to open a Super SA Income Stream to commence a TTR ?
To commence a TTR you need a super account (for most members this is Triple S), and an Income Stream account.
Super SA’s Income Stream is designed to support a TTR strategy. It’s important to note that a Super SA Income Stream cannot make lump sum payments while you are still working. Funds can only be accessed through regular payments.
A Super SA Income Stream TTR strategy can allow you access to your super with the ability to draw down between a minimum of 2% and a maximum of 10% each financial year. At age 65 your TTR automatically converts into a Retirement Income Stream (RIS) when you meet a superannuation condition of release, such as retiring or reaching age 65. When this occurs you are entitled to tax-free investment earnings, no limits on lump sum payments and the 10% limit on your annual payments is removed.
For further information about minimum and maximum drawdown rates please refer to the Income Stream Product Disclosure Statement.
What should I consider before applying for a TTR?
Before you apply it’s important to know:
- Accessing your super via TTR could have an impact on the level of Centrelink benefits you (and your partner) receive
- Accessing your super benefits now can reduce the amount available to you when you retire
- Accessing money from super to reduce your work hours may not be the best option for you – and you might be able to take advantage of other arrangements (such as long service leave) with your employer instead.
Speak to a qualified financial adviser to work out whether TTR might be right for you.
Learn more about retirement planning
Are you thinking about retirement? Whether the big day’s five years or one year away, it’s time to take action to get yourself on the right track for a well-planned, comfortable future.
2 Subject to eligibility, for more information please refer to Super SA Income Stream PDS.