Transition to retirement while you keep working

Published 11 August 2020 (updated 1 December 2021)

LGIAsuper’s Transition to Retirement (TTR) Pension account can allow you to receive an income from your superannuation while you are still working. This type of account is for members who have reached their preservation age, which is between 55 and 60 years, depending on when you were born (see table below).

You can use a Transition to Retirement Pension account to receive additional income on top of your wage, or to top-up your income as you work less leading up to retirement.

This account is similar to our full Pension account, but you are unable to make lump sum withdrawals, and there are limits on how much you can take out each year, as follows:

  • You can withdraw up to a maximum of 10% of what your TTR Pension account balance was on the previous 30 June.
  • You must withdraw a minimum amount of 2% of what your TTR Pension account balance was on the previous 30 June. This rate was temporarily reduced by the Government in March 2020 for the remainder of the 2019/20 financial year, and was extended for 2020/21 and 2021/22 financial years.

You can choose from fortnightly, monthly, quarterly, half-yearly or annual payments.

Option to boost your superannuation

While receiving the additional income from a Transition to Retirement Pension account, some people also choose to grow their superannuation further with salary sacrifice (before-tax) contributions.

Depending on your salary level, this can be a tax-effective way of contributing into your superannuation, if you stay underneath your concessional contributions limit (cap).

Eligibility

To open a Transition to Retirement Pension account you will need:

  • a starting balance of at least $50,000
  • to have reached your preservation age, which is between 55 and 60, depending on when you were born – as listed in the table below.
 Date of birth Preservation age
 Before 1 July 1960  55
 1 July 1960 – 30 June 1961  56
 1 July 1961 – 30 June 1962  57
 1 July 1962 – 30 June 1963  58
 1 July 1963 – 30 June 1964  59
 From 1 July 1964  60

Once you turn 65, your Transition to Retirement Pension account will automatically be converted to a standard Pension account, which gives you more flexibility to access your superannuation.

Further information and advice

Before starting a Transition to Retirement Pension account, please refer to our Pension account Product Disclosure Statement. We also recommend you seek financial advice before deciding if this type of account is right for you.

LGIAsuper members can access our financial advice service*, with two types of advice available: limited advice on a single issue related to superannuation at no additional cost; and comprehensive retirement advice where fees will vary depending on the type and complexity of advice.

If you would like to discuss your retirement options with one of our financial advisers, please call us on 1800 444 396.


* LGIAsuper has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of LGIAsuper. LGIAsuper Financial Advisers are Authorised Representatives of IFS.

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