TRANSITION TO RETIREMENT PENSIONS

Instead of waiting until you retire, you can access your super once you reach your preservation age using a transition to retirement pension. Under TTR rules you need to set up a “noncommutable” income stream or one that cannot be converted into a lump sum. This means you take out regular payments from your super rather than a lump sum cash payment while you are still working. At the same time your employer continues to contribute. The maximum drawdown is 10% of the pension account balance annually. The income is taxed at a concessional rate up to the age of 60, when it becomes tax free.