Ready to work less? You don’t have to lose income

Imagine cutting back your hours at work, without cutting back your pay. For many Australians aged 60 and over, that’s not just wishful thinking. It’s something you can actually do through a Transition to Retirement (TTR) strategy.

Whether you’re craving a long weekend every week, a slower pace, or more time with the grandkids, a TTR strategy can help you shift towards retirement while keeping your income steady.

What is a Transition to Retirement strategy?

A Transition to Retirement (TTR) strategy lets you use some of your super while you’re still working. It’s designed to give you more flexibility as you move towards retirement – whether that means working fewer hours, building your super, or both.

So, how does it work?

• You open a Super SA TTR Income Stream account using some of the money already in your super.

• This account pays you a regular income (up to 10% of your Income Stream balance per year).

• At the same time, your employer keeps paying contributions into your Triple S account, so your super continues to grow.

This gives you two practical options:

1. Work less, keep your income steady. If you reduce your work hours, you can draw an income from your Income Stream account to top up your pay.

2. Keep working, boost your super. This involves salary sacrificing into your super and using your income stream to maintain your take-home pay. This can help you grow your balance in a tax-effective way.

TTR is a simple idea that can make a big difference in the years leading up to retirement.

Lisa’s story: Working less without losing out

To see how a TTR strategy works in practice, let’s look at Lisa’s story.

Lisa is 60 and works full-time. She loves her job but wants more time with her grandchildren. While she’s ready to slow down, she’s not ready (financially or emotionally) to retire.

So, Lisa starts a TTR strategy. She drops to a four-day week and starts a Transition to Retirement Income Stream to top up the difference in pay.

For Lisa, it’s the best of both worlds: more time for family, without sacrificing financial security.

You can read more about Lisa’s story here.

Is TTR right for you?

A TTR strategy might be worth considering if you:

• Are aged between 60 and 64

• Are still working

• Want to reduce your hours without reducing your income

• Want to grow your super before retirement.

TTR can offer a flexible way to ease into the next stage of life, on your own terms.

Things to keep in mind

Like any financial strategy, a TTR strategy should be tailored to your goals and personal circumstances. It’s important to understand how it might affect your super balance, tax, and long-term retirement plans.

That’s where professional advice matters. A financial planner can talk you through your options and help you decide whether a TTR strategy is right for you.

We’re here to help

If you’re curious about how a TTR strategy could work for you, we’re here to help.

Visit our TTR page or give us a call. We’ll walk you through the steps, answer your questions, and help you feel confident about your next move.