Transition to retirement: helping you to access your super while you keep working
23 August 2023
If you are approaching retirement, we have an account that lets you start accessing some of your super while you are still working.
It’s called a Transition to Retirement (TTR) Pension account, and it can give you a good way of easing yourself into retirement. Depending on your personal situation, there are three different ways that you can use this type of account:
- Top up your income as you work less or take a lower-paid position leading up to retirement.
- Continue working full-time and receive money from your super as additional income.
- Take regular income from your super, and then redirect part of your salary back to super through salary sacrifice – depending on your salary level, this can be a tax-effective way of growing your super, if you stay under your contributions cap.
When are you eligible?
A TTR Pension account can be opened any time after you have reached your preservation age – this is the age when you can start accessing some of your super.
Your preservation age will be between 55 and 60 years, depending on when you were born (as below).
| Date of birth |
Preservation age |
| Before 1 July 1960 |
55 |
| 1 July 1960 – 30 June 1961 |
56 |
| 1 July 1961 – 30 June 1962 |
57 |
| 1 July 1962 – 30 June 1963 |
58 |
| 1 July 1963 – 30 June 1964 |
59 |
| From 1 July 1964 onwards |
60 |
Differences from a full Pension account
The TTR Pension account is similar to our full Pension account, but with three key differences:
- You are unable to make lump sum withdrawals from a TTR Pension account.
- There are limits on how much you can withdraw from a TTR Pension account each year1:
- Up to a maximum of 10% of your TTR Pension account balance
- A minimum of 4% of your TTR Pension account balance
- Investment earnings for the TTR Pension account are taxed at a maximum rate of 15%. Earnings are tax-free for the full Pension account.
How a TTR Pension account works
To open a TTR Pension account, you will need a starting balance of at least $50,000, which you can transfer from your super.
Brighter Super offers you a choice of how you want your savings invested. We have a wide range of investment options to cater for different financial situations and goals.
You can choose how regular your payments will be – fortnightly, monthly, quarterly, half-yearly or annual. Pension payment amounts and frequency can be managed online, by logging onto your account in Member Online.
Your TTR Pension account sits alongside your Accumulation account. While your regular pension payments come from your TTR Pension account, any ongoing contributions from you or your employer are paid into your Accumulation account, so your super can keep growing.
When you turn 65 years of age, your TTR Pension account will automatically be converted to our full Pension account.
(Note for Defined Benefit members, there are additional requirements which are outlined in the Pension accounts Product Disclosure Statement).
Further information and advice
Before starting a Transition to Retirement Pension account, please refer to the relevant Brighter Super or Optimiser Pension accounts Product Disclosure Statement.
We also recommend you seek financial advice before deciding if a TTR Pension account is right for you.
If you already have a financial adviser, they can help you make informed decisions about your Pension account.
If you do not have a financial adviser, Brighter Super’s team of in-house financial advisers are here to help you2. Types of financial advice include limited advice on a single issue, scaled advice for retirement planning, and comprehensive advice.
Find out more about financial advice.
- Minimum and maximum payment amounts are initially calculated based on the TTR account balance at commencement and are then recalculated at 1 July each year thereafter. Unless your pension commences on 1 July, the minimum pension income will be a proportion of the full year pension amount. This proportion is based on the number of days from the date of opening the account to 30 June. The maximum amount is not proportioned in this way, and is always 10% p.a.
- Brighter Super Financial Advisers are Authorised Representatives of Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL No 232514. ESI Financial Services is a wholly owned entity of LGIAsuper Trustee (ABN 94 085 088 484) as trustee for LGIAsuper (ABN 23 053 121 564) trading as Brighter Super. ESI Financial Services provides financial services to Brighter Super members and employers under a service agreement with Brighter Super. ESI Financial Services has engaged IFS to facilitate the provision of financial advice to Brighter Super members. ESI Financial Services has also engaged Link Advice Pty Limited ABN 36 105 811 836, AFSL No 258145 to provide Brighter Super members with access to limited personal advice over the phone in respect to Brighter Super products.
LGIAsuper Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for LGIAsuper (ABN 23 053 121 564) (RSE R1000160) (the Fund) trading as Brighter Super. Brighter Super products are issued by the Trustee on behalf of the Fund. Brighter Super may refer to the Trustee or LGIAsuper as the context may be. This article may contain general advice which does not take into account your individual objectives, financial situation or needs. As such, you should consider whether it is appropriate in light of your own objectives, financial situation and needs prior to making any decision. You should consult a licensed financial advisor if you require advice which does take into account your personal financial circumstances. You should also obtain and consider the Product Disclosure Statement (PDS) before making any decision to acquire any products. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at https://www.brightersuper.com.au/governance.
This article contains information that is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to Brighter Super by calling us on 1800 444 396 or by emailing us at info@brightersuper.com.au.
