Work less 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.
