Since the Better Super legislative changes in 2007, people nearing retirement now have more options.

It’s quite possible that you could reach your preservation age and draw on your super without having to retire permanently from the workforce. For example, you could continue working part-time and use part of your super to supplement your income, instead of leaving the workforce altogether.

This is what is known as Transition To Retirement (TTR).

How does our TTR Pension work?

With a TTR Pension, you can draw upon your super as a pension (within minimum and maximum limits) for your living expenses, while continuing to accumulate super savings by contributing from your wage from your part time employment to your super account (including through salary sacrifice contributions). This may have many tax advantages; for example, it can reduce your current and future personal tax burden.

In addition, once you start a TTR pension, the income your pension account earns is not subject to the 15% tax rate that applies to investment returns on accumulation accounts (your standard super account).

While our TTR Pension offers you flexibility so you can enjoy work for a longer period while supplementing your income from your super, it’s important to understand that TTR pensions are subject to restrictions. You can’t make a partial or full cash withdrawal from the pension (referred to as “non-commutable”) except in limited circumstances and your pension payments will only last until your pension account balance runs out.

In the Pension Guide, you can find out more about the conditions and the benefits before deciding whether to acquire a TTR Pension.

Can you top up your super at any time?

Yes, depending on how old you are.

If you’re under 65 years of age you can top up your super at any time.

If you’re aged 65-74, you must have worked at least 40 hours in a period of no more than 30 consecutive days in the year in which contributions are made. You only need to demonstrate this once each financial year. It’s called the work test and we will send it to you if you need to complete it.

If you’re 75 or over, you’re not eligible to make any personal super contributions.