Mega-boost your super with TTR
Kyle's Transition to Retirement strategy
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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 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.
Run your own numbers
Use our Retirement Income calculator to run your own numbers and see how a TTR strategy could work for you.
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Case study assumptions and notes
This case study is for illustrative purposes only. It assumes:
- Kyle is aged 60 and over
- He has a Triple S account and receives super contributions exclusively from her South Australian public sector employer
- Investment returns, insurance costs, and administration fees are excluded for simplicity
- Kyle's Triple S account has a 100% untaxed component.
Note: Some figures have been rounded for ease of presentation.
