TelstraSuper

Transition to retirement (TTR) FAQs

• What is a transition to retirement (TTR) strategy?
  Transition to retirement is a financial strategy for drawing part of your super before your retirement age. If you are looking to wind back working hours or boost your super in the lead-up to retirement, applying for a TTR pension may be the answer.
• What is the difference between TTR and account-based pension?
  The difference between a TTR pension and an account-based pension is that the former provides an income stream while you are working; the latter does so once you have retired.
• How much can I receive from a TTR account?
  You can choose how much you want to receive (up to 10% of your TTR account balance annually) and how often you receive your stream of income payments i.e., twice-monthly, monthly, quarterly, or annually.
• What happens to TTR when you turn 60?
  When you reach age 60, payments from your TTR income account become tax free. You have the potential to salary sacrifice if you are still working to pay less income tax, while topping up your pay with a tax free TTR income stream.
• And what happens to TTR when you turn 65?
  When you turn 65, we’ll automatically change your TTR income stream to a Retirement income stream as you’ll have satisfied a condition of release. Turning 65 is generally an opportune time to make sure that your pension settings still suit you, using the tax-free retirement income stream.
• What are the investment options with a TTR?

  You must make an investment choice when you open a RetireAccess TTR account regardless of whether you’re an existing or new TelstraSuper member. We offer a range of investment options to suit your investment goals, please refer to the Retire Access Product Disclosure Statement (PDS).

  Lifestyle Investments	Diversified or single asset Investments
  To help you invest in the assets that best suit you, we offer a range of lifestyle investment options that invest in both growth and defensive assets in varying percentages with different levels of risk and expected return. Lifestyle Conservative Lifestyle Balanced Lifestyle Moderate Lifestyle Growth	You can individually tailor your investments by choosing a mix of assets classes or single asset classes. Australian Shares International Shares Property Diversified Bonds and Credit Cash

  
  

  However, if you satisfy a different condition of release before turning 65 (see PDS) you can also change to a Retirement income stream by notifying us. Simply complete the Condition of Release Notification form available here.

  Once you have met a condition of release and changed to a Retirement income stream, any income you earn from your investments will be tax-free and there will be no limit on your annual payments. Your existing investment option allocation will remain the same or, where applicable, will be transferred to the Lifestyle investment option equivalents, and into a tax-free environment.

  Visit our RetireAccess page for more information.

• How much can I withdraw from a TTR account?
  The maximum amount that can be withdrawn with a TTR income stream is 10% per year. This applies from age 60 until you satisfy a condition of release, for example turning 65.
• What age can I start a TTR?
  The age may vary depending on your birth year, so it is essential to check your preservation age. In general, the age range is between 55 and 60.
• Is a TTR tax free?
  Transition to retirement payments are tax-free if you are over 60 years old. Between the ages of 55 and 59, the tax rate has a 15% offset, so it is lower than your normal income tax rate.
• Can I still work full-time and benefit from a TTR?
  Yes, you can work full-time and at the same time draw an income from your TTR income stream.
• Are there any disadvantages of TTR?
  TTR pays funds from your retirement savings so it can reduce the amount you have available when you finally retire. However, you can set up your TTR to lift your retirement savings, especially after you turn 60. Contact us on the number below if you’d like advice about how to do this.