Transition to Retirement Calculator


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Transition to Retirement Recent Posts

What is Transition To Retirement?

Transition to retirement is a Government initiative that allows people close to retirement age to draw a partial pension from their own superannuation fund. This gives people the ability to contribute more to super without having less money to live on each week.

Prior to the scheme, contributing more to super meant having less money in your pocket on a day to day basis as there was no easy way to access your super prior to retirement. Thanks to transition to retirement or “TTR”, you can now draw money from your super each week to offset those extra contributions.

Transition to retirement strategies are designed to give you greater flexibility as you move towards retirement. Once you reach what’s known as your ���preservation age’, you can access your super by drawing a pre-retirement pension (a regular income stream drawn from your super savings).

Work Less Hours without having Less to Spend...

As you reach retirement age you may wish to cut down your hours and spend more time doing the things you love. However, cutting back your hours means receiving less income which could make this option unrealistic. If you would like to ease your way into retirement, a transition to retirement strategy could enable you to reduce the number of hours you work or  retire part time.

While working less will mean a smaller pay packet, if you decide to take out a pre-retirement pension, you could supplement your work income with the pension payments. This would give you more time to do the things you want, while maintaining your income and lifestyle.

A transition to retirement strategy could also be beneficial if you have reached your preservation age but want to continue working full time. The tax concessions on offer can make this a great way to boost your super balance in the years before you enter full retirement.