Transition to Retirement

Making the transition to retirement

A Transition to Retirement (TTR) income stream gives you extra flexibility in the later years of your working life, allowing you to transfer or rollover some or all of your super into a super income stream account and receive regular payments without having to retire.

Are you approaching retirement?

You can access your super while you’re still working and use a TTR income stream to boost your super or reduce your work hours without affecting your take home pay.

Everyone has different retirement needs, so it’s important to know that planning for retirement is not a one-size fits all approach.

What our short video to learn more about TTR.

How TTR could benefit you

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Work less and earn the same

Replace any reduction in your take home pay with payments from your income stream.

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Work full time and boost your super

Keep working full time and give your savings a boost by paying more into super and saving on tax.

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Keep any insurance through your super

Insurance you have through your super account can continue as long as you still meet eligibility requirements.

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Choose your income amount

Withdraw between 4% and 10% of your income stream account balance each financial year and, choose a date and frequency that suits you.

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Reduce income tax

You don’t generally pay as much tax on payments from your income stream, compared to income from employment. The benefits will depend on your own personal circumstances.

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Transfer to a Fully Retired income stream

When you turn 65 or meet a condition of release, you’ll gain full access to your account and stop paying tax on investment returns.

How TTR works

The Transition to Retirement (TTR) income stream lets you access part of your super through an income stream (also known as an account based pension) while you’re still working. Here’s how it works:

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Transfer a lump sum from your super account.

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Use this money to set up a TTR income stream.

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a) Keep contributing to your super account.

b) Get paid an income from your income stream account.

Case studies: How could you use a TTR income stream?

There are two key ways to use a TTR income stream. The benefits of each strategy (including any tax savings) will always depend on your personal circumstances. See the case studies below:

Work less

Bill is age 60 and has $150,000 saved in super. He currently earns $75,000 per year (gross), so his take home pay is $2,374 per fortnight.

Bill wants to cut back his hours to four days a week, but he doesn’t want to reduce his fortnightly income. Speaking to our Advice team, he learns he can:

Cut back his hours to four days a week and receive $1,970 per fortnight
Open an income stream account and request a fortnightly payment of $403.

Bill can now enjoy his extra day off, without sacrificing his spending habits*.

_{*It is important to note that using funds from his super now may reduce the amount that is available to fund Bill’s income when he fully retires.}

_{These examples are provided for illustration purposes only and are not intended to replace financial advice. This information doesn’t represent the benefits that you could receive or the fees and costs you may pay - the outcome will depend on your personal circumstances.}

_{Assumptions: The figures shown are in today's dollars, assuming a 2.5% per year rise in the cost of living (inflation). Calculations are based on 2024/25 tax rates and the Medicare levy of up to 2% of taxable income is not included. Rebates or tax offsets that may lower the tax you pay are also not included. Past performance is not a reliable indicator of future performance.}

Save more

Mary is also age 60. She earns $75,000 a year and has $150,000 saved in super. Mary plans to retire at age 67. With only a few years to go, she wants to do everything she can to boost her savings.

Speaking to our Advice team she learns she can:

Contribute an extra $1,781 each month ($21,375 per year) using salary sacrifice, which reduces her taxable income
Open an income stream account and request a monthly payment of $1,247 ($14,962 per year), which will be paid tax free because she’s over age 60.

This means Mary can add $6,413 to her super over the year without affecting her take home pay.

_{*These examples are provided for illustration purposes only and are not intended to replace financial advice. This information doesn’t represent the benefits that you could receive or the fees and costs you may pay - the outcome will depend on your personal circumstances.}

_{Assumptions: The figures shown are in today's dollars, assuming a 2.5% per year rise in the cost of living (inflation). Calculations are based on 2024/25 tax rates and the Medicare levy of up to 2% of taxable income is not included. Rebates or tax offsets that may lower the tax you pay are also not included. Mary's salary and income stream payments are assumed to increase in line with inflation of 2.5% per year. Salary sacrifice is done to maximise the concessional contributions cap in line with indexation of the cap. Past performance is not a reliable indicator of future performance.}

Important things to consider

Before opening a TTR account, here are some important considerations and requirements:

A TTR income stream is treated differently to other forms of income by the Centrelink assets test and may affect any Centrelink entitlements. If you’re on Centrelink payments, or are planning to apply for them, make sure you get further advice before opening a TTR account.

Lump sum withdrawals aren’t generally allowed (unless you meet another condition of release that lets you access your benefits from the TTR account)
Your account balance counts towards your total super balance (exceptions apply)
You can stop your payments and transfer your balance to your Cbus Super account but you cannot add more funds to your income stream once it starts.
Once you turn 65 (or tell us you meet another condition of release that gives you unrestricted access to your TTR account balance) your account will convert to a Fully Retired income stream. As part of this:
- Tax on investment earnings don’t usually apply
- The amount you take into the Fully Retired income stream will count towards your transfer balance cap.

To find out more, read the Cbus Super Income Stream Product Disclosure Statement.

Online calculators

Our range of calculators can help you to maximise your super and plan for retirement.

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Education sessions

Our in-person seminars and online webinars can help you get the most out of your super and understand your options at retirement.

Join a seminar or webinar

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Speak to a financial adviser

You don’t need to work things out alone. If you need advice about setting up a Cbus TTR income stream, our Advice team can help you.

Request a call back

FAQs about transitioning to retirement

Who’s eligible for a TTR account?

To be eligible to open a TTR account, you need to be between 60 and be under 65.

Are there any restrictions on a TTR account?

Lump sum withdrawals aren’t generally allowed (unless you meet another condition of release that lets you access your benefits from the TTR account)
Your account balance counts towards your total super balance (exceptions apply)
You can stop your payments and transfer your balance to your Cbus Super account but you cannot add more funds to your income stream once it starts

Once you turn 65 (or tell us you meet another condition of release that gives you unrestricted access to your TTR account balance) your account will convert to a Fully Retired income stream.

As part of this:

Tax on investment earnings don’t usually apply
The amount you take into the Fully Retired income stream will count towards your transfer balance cap

How often can I receive income stream payments?

You can choose to have your income payments paid:

Frequency	Payment date
Fortnightly (default)	Every second Friday
Monthly, quarterly, half-yearly, yearly	15th or 28th of the month

You can’t choose an annual payment date of 15 July because your 1 July account balance isn’t available at that date. If you don’t nominate a frequency, you’ll be paid fortnightly. You’ll continue to receive payments until the money in your account runs out.

How are investment earning taxed?

In a TTR income stream, your investment earnings are taxed at up to 15%.

How can I contribute to my super?

There are four ways to add extra contributions to super and each have their own benefits. Some of these are dependent on your age, income and super balance: