Transition to retirement
Who is it available to?
If you are age 60-64 and still working, you may be able to open a Transition to retirement (TTR) account. A TTR account will provide you with income payments. Some people choose to reduce their working hours and use TTR income payments to make up for their salary shortfall; others use a TTR account as part of a tax-saving strategy.
How does it work?
A TTR account must pay you an income payment at least once in each financial year.
Income payments are tax-free and can be made fortnightly, monthly, quarterly, six-monthly or annually. The annual payment amount can be anything from 4% to 10% of your TTR account balance.
What are the benefits?
Many who decide to move to part-time work arrangements open a Transition to retirement (TTR) account. The income payments they receive help to supplement their reduced salary.
A TTR account can also help provide tax benefits for people aged 60-64 who continue to work full time. While receiving an income from your TTR account, you could structure your super contributions to maximise your savings and reduce tax, without reducing your take-home pay.
Our Transition to retirement fact sheet has some case studies that detail how this strategy works. It can get complicated, so if you're unsure, consider seeking advice.
How do I set it up?
You should read our Product Disclosure Statement and Target Market Determination before applying for an account. Once you're ready, complete the application form in the back of our Retirement PDS. To ensure you get the most out of a TTR account, consider getting advice.
You can also choose to set up your account with Easy Default, a quick way to set up your account with a default payment amount, payment frequency, investment and drawdown strategy.
What if I’m 65 or older?
If you are 65 or older, you’re eligible to open an NGS Income account. This has all the benefits of a TTR account plus tax-free investment earnings and unrestricted access to your savings.
How much will you need?
How to retire with NGS
Understanding risk and your retirement
