What is a TTR Pension?

A TTR Pension or Transition To Retirement Pension is an optional phase your superannuation account can take once you reach 55 years of age.

It was originally meant to assist those people who wanted to retire early and could phase into retirement gradually reducing their work days, it has however become a viable strategy to boost your retirement.

In essence the Transition To Retirement (TTR) Pension is just like a normal superannuation pension account except you can not gain access to the bulk of the funds, what has now become common is for those still working to take a Transition To Retirement (TTR) Pension and then salary package the same amount into their super account, a seperate page can be found here for TTR Pension Strategies.

There is a minimum and maximum amount you may withdraw from a transition to retirement pension each year. Until you retire or reach age 65 the maximum income you may draw in any year is 10% of the account balance. If you are under 65 the minimum amount you must take for the 2014/15 financial year is 4%.

It is very highly recommended that you speak to us at A2Z Finance Solutions (A2Z) before attempting any TTR Pension Strategy as it can cause more problems than its worth.