First Super retirement 1
First Super retirement 1
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Transition to retirement

Most Australians have the option of retiring when they reach their preservation age. But that doesn’t mean you have to. You may enjoy working. You may still need the income it generates. You may prefer to ease your way into retirement by slowly reducing your hours rather than stopping at once.

The Government policy called Transition to Retirement (TTR) offers you flexibility with these choices. Once you reach Preservation Age, you can supplement your salary with a First Super Transition to Retirement Allocated Pension. You may also be able to minimise your tax obligation and boost your super before you retire fully.

Investment earnings within your superannuation fund are generally taxed up to 15%.

You can use your First Super TTR for a number of different reasons.

“I want more ‘me time’”
Whatever your reason for wanting more ‘me time’ – be it spending time with family, starting a new venture or something entirely different – a TTR account lets you reduce your working hours and use some of your super to supplement your income.

“I’d like to boost my super savings”
If you’re worried about not having enough for retirement, a transition to retirement strategy can be a tax-effective way to boost your super and provide extra comfort. You do that by contributing some of your before-tax salary (salary sacrifice) into your super account and making up the shortfall in take home pay through payments from your TTR account.

“I’d love to pay less tax”
You’re in luck! With a transition to retirement strategy, you get the double advantage of both saving income tax through salary sacrifice and the tax concessions that apply to the income from your TTR account. And when you turn 60 you won’t pay any tax on your pension income!

“I want access to additional money now”
You can. Simply open a TTR account with some of your super money to access your money. But it’s good to keep in mind that you’ll be accessing your super savings earlier than might otherwise be the case.

With all of these benefits come a few rules

  • You can make concessional contributions to your super account, currently capped at $27,500 for the 2022/23 financial year. Concessional contributions includes employer contributions, salary sacrifice and member deductible (self-employed)
  • You must receive at least one payment during the financial year and there is a minimum payment based on your age and account balance
  • You can draw up to 10% of your TTR account balance* each financial year, that can be made as one single payment
  • There is a minimum amount that must be withdrawn each financial year. For members under 75, please call our Member Services Team on 1300 360 988
  • In order to set up a First Super TTR, you must have at least $10,000 in super.

And if you are looking to retire fully, you may wish to set up a First Super Allocated Pension instead.

If you are unsure about which option is best for you, you may like to speak to a First Super Financial Planner^. They’ll assess your situation, discuss your goals and help you make the choice that’s right for you.

At what age can I access a TTR Pension account?

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 60

We’re here to help. So let’s talk.

If you would like to discuss Transition to Retirement, or if you have any other questions, please call our Member Services Team on 1300 360 988, or email us.


* 10% of initial balance on transfer and subsequent balance from 1 July each financial year.
^ Financial Advice will be provided by Industry Fund Services Ltd (IFS) (ABN 54 007 016 195, AFSL 232514), or an IFS Authorised Representative.