Mega-boost your super with TTR
Lisa’s Transition to Retirement strategy
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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 she do it?
Lisa opened a TTR Income Stream 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 reduces 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.
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:
- Lisa is aged 60 and over
- She 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
- Lisa's Triple S account has a 100% untaxed component.
Learn more about retirement planning
Visit the Transition to Retirement page
Try our Retirement Income calculator
Register for a webinar or seminar
Speak with a financial advisor
Individual outcomes may materially differ from the outcome shown. It is not intended to be relied on for the purposes of making an investment decision in relation to the superannuation schemes administered by Super SA. This information is general in nature and does not take into account your personal objectives, situations or needs. You should assess your own financial situation before making any investment decisions based on this information. Past performance is not a reliable indicator of future performance.