Is your Transition to Retirement (TTR) account still working as hard as it could be? Check in to make sure it still suits your circumstances.
Draw down on your income stream to top up your take-home pay. Payments from super are generally taxed less than your income, and completely tax-free once over 60.
Boost your super and take advantage of a lower tax rate
Supplement your income from your super
To reset or 'reboot' your TTR strategy, you can ‘roll back’ the balance of your TTR into your super account, then re-establish a new TTR with the increased super balance. One thing to consider is whether you will forfeit the Retirement Reward if you do this within a certain period. It’s a good idea to chat with one of our advisers beforehand.
The government imposes minimum and maximum drawdown limits based on a percentage of the balance of your TTR Income Stream account. By rebooting, you can potentially access a higher income from the income stream and contribute more into super.
There is no limit on how much you can invest in a TTR account. However, if your total super balance is more than $1.9 million you will not be able to make any further after-tax contributions to super (i.e. from your take-home pay or savings).
The income you receive from your TTR income stream may impact your tax status and both you and your partner’s (if you have one) eligibility for Centrelink benefits. Make sure you speak to an expert to find out if this will affect you.
There may also be some downsides to rebooting if you started your income stream before 1 January 2015, so speak to an adviser before changing your strategy.
If so, Centrelink captures these accounts under the old income test rules. If any changes are made to the account, this may impact how it is assessed. It's important to speak to Centrelink or seek advice from a financial adviser before making any changes to an income stream set up before this date.
A TTR is taxed up to 15% on the investment earnings.
If you are between 60 and 65, make sure you let us know if you’re retired or ceased an employment arrangement. This is so we can convert your TTR to a HESTA Retirement Income Stream (RIS), where the investment earnings are tax free and there's no upper limit on how much you can withdraw. Bear in mind, the minimum yearly drawdown amounts (set by the Government) that apply to a TTR also apply to a RIS.
To let us know you have retired, simply complete the Convert from TTR to HESTA Income Stream form (pdf).
TTR strategies can be complicated. We suggest you seek advice specific to your individual circumstances before changing your TTR strategy.
