You don’t need to retire or stop working to access your super. With a Transition to Retirement (TTR) account, you have the flexibility to cut back your work hours while accessing some of your super. Or keep working, but use your super to pay off your mortgage faster.
A TTR account allows you to top up your existing income by also receiving payments from your super.
How it works:
Once you’ve met your preservation age,* you can set up a TTR account by transferring part of your super into a TTR account. This means you’ll have:
1. If you salary sacrifice into your super, you can reduce your tax and top up your income through pension payments. This could save you more without affecting you take home pay. Even if you don’t salary sacrifice, there are some great benefits of TTR as you near retirement:
2. Cut back on working hours without reducing your income, by drawing from your pension to supplement your income.
3. If you’re 60 or over, your retirement income payments are generally tax-free and don’t need to be declared as assessable income when you lodge a tax return.
4. When you retire, it’s easy to switch your TTR account into a pension account. Find out more about Mercer Super’s Allocated Pension account.