Retire Right 410 Transition to retirement (TTR) pensions and strategies
Mar 4, 2026
Nathan Fradley, a financial adviser who specialises in complex retirement and superannuation matters. He walks through what a transition to retirement pension is and how it works. Short explanations on tax rules and withdrawal limits. Practical uses like topping up concessional contributions, handling property settlements and equalising partner balances. Key risks, setup steps and when to seek professional advice.
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What A Transition To Retirement Pension Actually Is
- A transition to retirement (TTR) pension is a special account-based pension for people aged 60 who are still working and haven't met the full retirement condition of release.
- TTR lets you access up to 10% (minimum 4%) of the pension balance each financial year while the pension's earnings remain taxed at 15% inside super.
TTR Lost Its Big Tax Arbitrage Advantage
- The old tax-arbitrage advantage of TTRs largely disappeared; earnings in a TTR are still taxed at 15% whereas previously some benefits allowed near-zero tax.
- That tax change and raising the eligible age to 60 removed the large historic incentive to move entire balances into TTRs purely to avoid tax.
Use TTR To Phase Down Work Not Just For Tax
- Use a TTR to ease the psychological and practical shock of stopping work by supplementing income so you can reduce hours gradually rather than retiring cold-turkey.
- Nathan and Glenn note this can fund holidays, mortgage repayments or reduced workdays while keeping routine and purpose during transition.