3 ways a Transition to Retirement strategy can work for you
27 October 2025Section Heading
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Turning 60 doesn’t have to mean stopping work altogether. In fact, many people are using a Transition to Retirement (TTR) strategy to shape the lifestyle they want. That could mean cutting back on hours, giving your super a final boost, or simply enjoying more flexibility with your money.
Each case study below is designed to give you a clear picture of what’s possible with a TTR, and maybe even spark ideas for your own path.
What’s a TTR strategy?
A Transition to Retirement (TTR) strategy is a way for members aged 60 and over to ease into retirement, even if you’re not quite ready to stop working. It involves opening a TTR Income Stream alongside your Triple S account, so you can start accessing your super while you’re still working.
But that’s not all, a TTR strategy can also help you boost your super through salary sacrifice, without sacrificing your income or lifestyle.
What could this mean for you? Explore the case studies below to see the possibilities.
Meet Lisa, she’s working less but keeping most of her income
Lisa is 60 and earns $100,000 a year working full-time. She loves her job but wants more time with her grandchildren. Cutting back her hours would mean a drop in income, and that worries her. She has $400,000 in her Triple S account.
Her goal: Work fewer days without losing too much take-home pay.
How did Lisa do it?
Lisa opened a TTR Income Stream account and transferred $300,000 into it from her Triple S account. Because Triple S super isn’t taxed upfront, 15% tax was deducted when the funds were transferred, leaving her with $255,000 invested in her income stream and $100,000 still in Triple S.
Under TTR rules, she must withdraw between 4% ($10,200) and 10% ($25,500) of her income stream balance in any year. Because she’s over 60, these payments are tax-free and aren’t assessed as income in her annual tax return.
Now, by reducing her work to 3 days per week, Lisa’s annual salary dropped to around $60,000. She chose to withdraw an annual total of $15,000 from her Income Stream to make up the shortfall. This is a little less than before, but Lisa knows that with a little adjustment to her budget, she’ll manage just fine.
| Item | Before TTR | With TTR |
| Annual salary (before tax) | $100,000 | $60,000 |
| Income tax & Medicare levy paid | $22,788 | $ 9,888 |
| Take home pay (after-tax) | $2,969 per fortnight | $1,927 per fortnight |
| Income Stream payments | $0 | $ 577 per fortnight |
| Net income | $2,969 per fortnight ($77,212 per annum) |
$ 2,504 per fortnight ($65,112 per annum) |
The TTR advantage for Lisa
With a TTR strategy in place, Lisa enjoys reduced work hours and uses her Income Stream to top up her pay.
- Two days off each week
- Around $15,000 per year tax-free to top up her pay
- Continues receiving 12% employer contributions into Triple S on her $60,000 salary
- Stays connected to work while enjoying more family time.
Lisa understands that drawing on her super now means she’ll have less available at retirement. But for her, the trade-off is worth it.
Meet Kyle, he’s giving his super a mega-boost before retirement.
Kyle is 60 and earns $100,000 a year working full-time. He has $450,000 in his Triple S account. He wants to give his super a final boost to put him in good stead by the time he’s ready to retire at age 65.
His goal: Boost his super without reducing his take-home pay.
How did Kyle do it?
Kyle opened a TTR Income Stream account and transferred $400,000 into it from his Triple S account. Because Triple S super isn’t taxed upfront, 15% tax is deducted when the funds are transferred, leaving him with $340,000 invested in his income stream and $50,000 still in Triple S.
At the same time, he set up a salary sacrifice arrangement of $50,000 a year from his before-tax salary. This dropped his taxable income to $50,000, which lowered the tax he paid.
Next, Kyle arranged fortnightly tax-free payments of $1,300 from his TTR Income Stream into his bank account. That way, his take home pay stayed the same as before.
| Item | Before TTR | With TTR and salary sacrifice |
| Annual salary (before tax) | $100,000 | $50,000 |
| Salary sacrifice into super | $0 | $50,000 |
| Income tax & Medicare levy paid | $22,788 | $6,538 |
| Take home pay (after-tax) | $2,969 per fortnight | $1,671 per fortnight |
| Income Stream payments | $0 | $1,300 per fortnight |
| Net income | $2,969 per fortnight ($77,212 per annum) |
$ 2,963 per fortnight ($77,246 per annum) |
| Net benefit | - | $8,700* |
*Net benefit = net contributions into superannuation less payments from income stream. (That’s $50,000 less 15% allowance for tax minus $33,800).
Triple S is an untaxed scheme, and tax is deferred until a benefit is paid. For comparison purposes, we have accounted for 15% tax on contributions into super to show a more accurate net benefit. Kyle is using the tax savings to increase his super for retirement.
The TTR advantage for Kyle
With a TTR strategy in place, Kyle keeps the same take-home pay, pays less tax, and grows his super faster.
- His take-home pay remains steady at around $2,960 per fortnight
- He redirects part of his salary, which would normally be taxed at 32% (including the Medicare Levy), into his super, where it’s only taxed at 15% upon withdrawal.
- His super increases by about $8,700 more each year (plus any investment returns)
- The income he draws from his TTR Income Stream is tax-free.
Kyle’s happy knowing he can grow his super faster while still enjoying the same lifestyle.
Meet Sharon, she’s paying down debt to ease financial stress
Sharon is 60 and earns $100,000 a year working full-time. She has $500,000 in her Triple S account. Her biggest worry is her $200,000 mortgage, and she’s determined to pay it down before retiring.
Her goal: Use her super to reduce mortgage stress and feel more confident about retirement.
How did Sharon do it?
Sharon opened a TTR Income Stream account and transferred $450,000 into it from her Triple S account. Because Triple S super isn’t taxed upfront, 15% tax is deducted when the funds are transferred, leaving her with $382,500 invested in her income stream and $50,000 still in Triple S.
Under TTR rules, she must withdraw between 4% ($15,300) and 10% ($38,250) of her income stream balance in any year.
She decided to take the maximum (10%) this year and withdrew $38,250 as a tax-free payment. She used the money to make a direct repayment on her mortgage, reducing her debt from $200,000 to $161,750.
| Item | Before TTR | With TTR |
| Annual salary (before tax) | $100,000 | $100,000 |
| Take home pay (after-tax) | $77,212 | $77,212 |
| Income Stream payments | $0 | $38,250 in the first year |
| Net annual income | $77,212 | $115,462 |
The TTR advantage for Sharon
Sharon’s TTR strategy is a practical way to ease financial stress, reduce debt, and feel more confident about retiring.
- Withdraws $38,250 tax-free without affecting her taxable income
- Uses the funds to make a significant dent in her mortgage
- Continues receiving 12% employer contributions on her $100,000 salary, topping up her balance while she’s drawing from it.
For Sharon, it’s not just about growing her super, it’s about paying her mortgage off quicker to achieve peace of mind. She understands that by drawing on her super now, she will have less super savings in retirement.
Where to next?
If any of these case studies sound like your situation, it might be time to explore your own TTR strategy. Just keep in mind, we created these case studies to show you how you might be able to use a TTR strategy. As such, they are examples only and don’t take into account your personal circumstances. If you’re thinking about starting a TTR strategy, it’s a good idea to speak with a licensed financial planner. They can help you decide whether a TTR is right for you and show you the best way to make it work for your goals.
Here’s how to learn more or get started:
Assumptions and notes for these case studies
These case studies are for illustrative purposes only. They assume:
- Each individual is aged 60 and over
- Each individual has a Triple S account and receives super contributions exclusively from their South Australian public sector employer
- Investment returns, insurance costs, and administration fees are excluded for simplicity
- Each Triple S account has a 100% untaxed component.