Transition to Retirement (TTR) in Plain English
Last reviewed 26 May 2026 · FiftyPlus Finance
'Transition to retirement', or TTR, is a feature of Australia's super system that lets eligible people draw a limited income from their super while still working. This guide explains what it is and what to consider.
This page is general information only and not personal financial advice. Speak with a licensed financial adviser — see choosing a licensed financial adviser — and verify current rules with the ATO and Moneysmart.
What a TTR pension is
A TTR pension lets you move some of your super into a special pension account and draw an income from it once you reach your preservation age, even if you're still working. The remainder stays in accumulation.
Annual drawings sit between a minimum (a percentage of the TTR balance, based on age) and a maximum (commonly 10% of the TTR balance per year). Unlike a standard account-based pension, lump-sum withdrawals are generally not permitted while the TTR is in 'pre-retirement' (non-retirement phase).
Who a TTR might suit
TTR strategies are often considered by people who want to:
Reduce work hours without reducing income
Topping up reduced wages with TTR pension payments can ease the transition from full-time work into retirement.
Boost super while still working
Some people use a TTR alongside salary-sacrifice contributions, which can change the overall tax outcome. The benefit depends on individual circumstances and current tax rules.
Maintain cash flow during a career change
If you're moving to lower-paid but more enjoyable work, a TTR can smooth the transition.
What to understand before starting one
Eligibility. You must have reached your preservation age. The preservation age depends on date of birth — confirm yours with the ATO.
Tax treatment. Investment earnings inside a TTR in pre-retirement phase are generally taxed similarly to accumulation accounts (not tax-free). Income payments may have different tax treatment depending on your age.
Fees. Holding both an accumulation and a TTR pension account means two sets of fees may apply. Check the PDS.
Insurance. Moving money out of accumulation can sometimes affect insurance cover attached to that account.
Long-term balance. Drawing income from super while still working reduces the balance available for full retirement, unless it's replaced by contributions.
Once you fully retire
When you meet a full condition of release (commonly retirement after preservation age, or turning 65), a TTR can usually convert to a standard account-based pensions, which has different tax and access rules and no maximum drawdown.
Where TTR fits in a wider plan
TTR is one tool among many. It interacts with tax in retirement, the Age Pension and your investments (once you reach pension age), and your overall retirement income options mix. Before starting or stopping one, it's worth a written cash-flow and tax analysis. Our questions to ask before investing checklist can help.
For a calm written overview of how the pieces fit, you can request your free information pack.
Frequently asked questions
Is a TTR right for everyone?+
No. The benefit depends on your age, income, fund fees, contribution capacity and broader plan. Personal advice is recommended.
What age can I start a TTR?+
From your preservation age, which depends on your date of birth. Check the current schedule on the ATO website.
Can I take lump sums from a TTR?+
Generally no, while it is in pre-retirement (non-retirement) phase. Once you meet a full condition of release, the rules change.
What is the maximum I can draw each year?+
Commonly 10% of the TTR balance per year, on top of a minimum based on age. Confirm with your fund and the ATO.
Does a TTR affect my Age Pension?+
It can, once you reach Age Pension age, because super balances and income are assessed under the means tests.
Can I stop a TTR later?+
Generally yes — you can typically roll the TTR balance back into accumulation, subject to fund rules.
Related guides
Important — please read
The information provided on this website is general information only. It does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider its appropriateness having regard to your own circumstances and obtain advice from a qualified, licensed financial adviser.
All investments carry risk, including the possible loss of some or all of the capital invested. Past performance is not a reliable indicator of future performance. No outcome, return, income or capital guarantee is made or implied.