What is preservation age?

Preservation age is when you can first access your super (via a TTR pension if still working). It ranges from 55 to 60: born before 1 July 1960 = 55, born 1960-61 = 56, 1961-62 = 57, 1962-63 = 58, 1963-64 = 59, after 1 July 1964 = 60.

Can I start a TTR and keep working full-time?

Yes. Many people use a TTR pension while working full-time as a tax strategy. You salary sacrifice a large portion of your salary (taxed at 15% in super) and draw a TTR pension to make up the income shortfall. This reduces your overall tax bill.

What happens to my TTR pension when I retire?

When you meet a condition of release (turning 65 or retiring after preservation age and declaring you won't return to work), your TTR pension automatically converts to a standard account-based pension. The key benefit: investment earnings become tax-free, and the 10% maximum drawdown cap is removed.

Transition to Retirement Planner

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Plan a gradual transition to retirement by accessing your super while still working part-time.

Free to useNo data storedReal-time dataAI insightsUpdated: February 2026

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.

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Real-World Examples

Gradual Wind Down

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.

Tax-Effective TTR Strategy

Peter is 58 and earns $130,000. Instead of reducing hours, he salary sacrifices $25,000 into super and draws $25,000 from a TTR pension.

Peter's taxable income drops to $105,000, saving ~$8,500 in tax. The $25,000 salary sacrifice is taxed at 15% ($3,750) vs 37% ($9,250) if received as salary. Net annual benefit: ~$5,000+.

Frequently Asked Questions

Glossary

TTR Pension

A Transition to Retirement pension stream from your super that you can access once you reach preservation age, even while still working.

Condition of Release

A trigger event that allows unrestricted access to your super, such as reaching age 65, retiring after preservation age, or permanent incapacity.

Drawdown Limits

TTR pensions have minimum (4%) and maximum (10%) drawdown requirements based on your balance at 1 July each year.

Related Tools

Preservation Age Calculator

Confirm your preservation age based on your date of birth.

Retirement Income Calculator

Estimate how long your super will last in full retirement.

Salary Sacrifice Optimizer

Calculate the tax savings from the salary sacrifice component of your TTR strategy.

How to Use

1Enter your current age (must be at or past preservation age).
2Set your target full retirement age.
3Input your current salary and desired number of working days.
4Enter your super balance.
5Set your total desired annual income (salary + super pension combined).
6Review the recommended TTR strategy and tax implications.

Key Information

You must have reached your preservation age to start a TTR pension (55-60 depending on DOB).
TTR pensions have minimum (4%) and maximum (10%) annual drawdown limits.
Earnings on TTR pension assets are taxed at 15% (not tax-free like a normal retirement pension).
Once you fully retire or turn 65, the TTR converts to an account-based pension with tax-free earnings.

Pro Tips

The classic TTR strategy: salary sacrifice your full-time salary into super while drawing a TTR pension to maintain income. This can reduce overall tax.
TTR works best for higher income earners where the tax arbitrage between marginal rate and 15% super tax is significant.
Reassess your TTR strategy annually — tax rules and your personal circumstances can change.
Factor in the Centrelink impact: TTR pension income counts towards the Age Pension income test once you're eligible.

Avoid These Mistakes

Withdrawing too much (up to 10% max limit) and depleting your super too quickly before full retirement.
Not realising TTR pension earnings are still taxed at 15% — they're NOT tax-free until full retirement.
Starting a TTR pension before checking preservation age — born after 1 July 1964 means preservation age is 60.
Forgetting that reducing work hours also reduces employer SG contributions into your super.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026