What you need to know as you transition to retirement

A Transition to Retirement (TTR) Pension account lets you receive income from your super while you're still working (as long as you've reached your preservation age) and offers a number of advantages.

Financial planner with clients

First published: August 2

This account works in much the same way as LGIAsuper’s pension account but you are unable to make lump sum withdrawals and there are limits on how much you can take out each year.

To open a TTR Pension account you 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)

Once you turn 65 your Transition to Retirement Pension account will automatically be converted to a Pension account. This is because there are no limits on how much you can withdraw from your super after this age.

You can use a Transition to Retirement Pension account to:

  • top up your income as you work less or take a lower paid position leading up to retirement
  • continue working full-time and receive money from your super as additional income
  • potentially reduce your tax bill and boost your super in the lead up to retirement by combining a Transition to Retirement Pension account with making salary sacrificed contributions to your super

You can decide how often you receive your pension income. Choose from fortnightly, monthly, quarterly, half-yearly or annual payments. You can also choose how much you receive with each payment, within limits of 4 and 10 per cent of your super balance each year.

Before starting a TTR Pension account we recommend you read the Pension accounts PDS and contact us to speak with an adviser who can help you understand whether this product is right for you.

For more information call our friendly staff on 1800 444 396.