What is a transition to retirement (TTR) pension

TTR strategies make use of a transition to retirement (TTR) income stream, which can be started as soon as a person reaches preservation age, without having to satisfy a full condition of release like retirement. A TTR income stream is subject to the same regulations as an account-based pension however the following limitations apply:

In general, lump sum withdrawals are not allowed.
Each fiscal year, there is a 10% restriction on income stream payments.

The most popular TTR strategy is the usage of concessional contributions along with it.

The advantages of employing a TTR approach can include:

Maximizing a superannuation balance tax-effectively in the years leading up to retirement (TTR and concessional contributions strategy).
Improved superannuation benefits by balancing the superannuation accounts of a couple’s members.
Reducing debt, including mortgages.
Cutting back on work hours before retiring and making up the difference in income with tax-efficient or tax-free income stream payments.

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