Transition to Retirement (TTR) Strategies Explained
Transition to Retirement (TTR) Strategies Explained
For many Australians, retirement isn’t a single moment — it’s a gradual shift.
You might enjoy your work but feel ready to slow down. Or you may want to reduce hours without taking a pay cut. Others simply want to make their money work harder in the years leading up to retirement.
This is where a Transition to Retirement (TTR) strategy can play a role.
A TTR allows you to access part of your super while you’re still working, creating flexibility around income, tax, and how you move into the next stage of life.
When can you start a TTR?
You can generally start a Transition to Retirement income stream once you reach age 60 and are still working.
At this point, super rules allow you to:
Keep working full-time or part-time, and
Begin drawing a limited income from your super
This gives you options — not obligations.
How a TTR strategy works
At its core, a TTR is quite simple.
You:
Move part of your super into a pension account, and
Draw an income of between 4% and 10% of that balance each year
The pension income is paid to you regularly — just like a salary — while the rest of your super remains invested.
What you do with that income is where the strategy comes to life.
Why people use TTR strategies
1. Reducing tax while still working
One of the biggest attractions of a TTR is tax efficiency.
Investment earnings inside a TTR pension are tax-free
Pension payments received after age 60 are also tax-free
For people still earning a salary, this can significantly improve overall after-tax outcomes.
2. Boosting retirement savings (without reducing take-home pay)
This is the part most people find confusing — but it’s also where TTR can be most powerful.
A common approach is to combine a TTR with salary sacrifice:
You draw pension income from your super
You redirect part of your salary into super via salary sacrifice
The pension income replaces the salary you’ve sacrificed
The result?
Your take-home pay stays similar
More money ends up in super
Less is lost to tax
Over time, this can meaningfully improve your retirement balance.
3. Easing into part-time work
For others, TTR isn’t about maximising super — it’s about lifestyle.
If you reduce your hours or move to part-time work, a TTR pension can:
Supplement your reduced wages
Provide income stability
Help you transition gradually rather than stopping work abruptly
This can be especially valuable for people who enjoy working but want more balance.
What are the downsides?
TTR strategies aren’t set-and-forget.
Some considerations include:
Less money remaining in accumulation for long-term compounding
Additional administration and ongoing review
The strategy may be less effective if balances are modest or fees are high
This is why TTR works best when it’s reviewed regularly and tailored to your situation.
Who is a TTR strategy usually suited to?
A TTR strategy may suit:
Australians aged 60+ who are still working
High-income earners wanting to reduce tax
People planning to retire earlier or reduce work hours
Those looking for a tax-efficient way to accelerate wealth in their final working years
It’s particularly common among professionals and public servants approaching retirement.
Final thoughts
A Transition to Retirement strategy isn’t about rushing into retirement. It’s about creating flexibility — flexibility around income, tax, and how you move into the next phase of life.
When structured properly, a TTR can be extremely effective. But it should always be personalised, reviewed regularly, and aligned with your broader retirement goals.
If you’re starting to think about how and when you want to retire — not just if — seeking advice can make all the difference.
At Access Wealth Group, we help retirees across Canberra transition to retirement confidently. Talk to a us about optimising your Canberra retirement planning.
This article is of a general nature only and does not take into account your individual financial circumstances, objectives, or needs. It does not constitute personal financial advice. You should not act on any of the information provided without first seeking professional financial advice that considers your personal situation.
Access Wealth Group, Suite 2, Chisholm Shopping Village, 74 Halley Street, Chisholm ACT 2905 Phone: 0410 443 742 | Email: brendan@accesswealthgroup.com.au