Plan a gradual transition to retirement by accessing your super while still working part-time.
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
TTR pension drawdown
$20,000
5.0% of balance / yr
Reduced salary
$60,000
SG $7,200/yr
Annual tax savings
$12,000
vs full-time salary
Super at the end
$492,192
after 7 TTR years
The strategy bar shows how a reduced salary plus a TTR pension drawdown reaches your target income.
Net 5.95% return (7% gross less 15% earnings tax on TTR assets) plus reduced SG, minus the drawdown each year.
A Transition to Retirement (TTR) strategy lets you access your super as an income stream while continuing to work: either at reduced hours or full-time with a salary sacrifice strategy. If you've reached your preservation age (between 55-60 depending on your date of birth), a TTR pension can help you ease into retirement, supplement reduced income, or even boost your super through tax-effective strategies.
Across 50 MySuper products, the typical return over the ten years to 30 June 2026 was 8.0% a year after fees and tax, and the typical fee on a $50,000 balance was $408 a year, from APRA's data.
From 20 September 2026, the full Age Pension is $1,237.70 a fortnight for a single and $1,866.00 for a couple together. It next changes on 20 March 2027.
Helen is 60, earns $110,000 full-time, and has $500,000 in super. She wants to drop to 3 days ($66,000) and maintain $90,000 total income.
Helen draws $24,000/year from her TTR pension (4.8% of balance). Her combined income is $90,000. At age 65, her TTR converts to a full pension with tax-free earnings.
Peter is 61 and earns $130,000, so his employer pays $15,600 of super guarantee. He salary sacrifices $16,900, taking his concessional contributions to the $32,500 cap, and draws $16,900 from a TTR pension to keep his take-home pay.
TTR pension payments are tax-free from 60, so Peter's taxable income drops to $113,100. The $16,900 is taxed at 15% in super ($2,535) instead of 30% plus the 2% Medicare levy as salary ($5,408): about $2,873 a year less tax. Sacrificing more would exceed the concessional cap unless he has unused cap from earlier years.