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- Unit 3 / 3 Fermont Street,
Underwood, QLD 4119 - Po Box 36, Underwood, QLD 4119
Starting a Transition To Retirement Pension (TTR)
You commence a TTR pension by transferring some of your super from your accumulation account into a pension account.
The transferred funds don’t count towards your transfer balance cap because you’re still working and therefore not in retirement phase. But the funds in your TTR pension account will count towards your transfer balance cap once you do retire.
You must leave at least a small balance in your accumulation account so that it remains open to receive your employer’s compulsory super guarantee contributions (SGC) or any voluntary contributions you may want to make.
Investment earnings in both your accumulation and pension accounts are taxed at 15%.
You must withdraw a minimum of 4% of your TTR pension account balance each year (if you’re aged under 65) up to a maximum of 10%. At least one withdrawal must be made each year.
Once you’re over 65, there are different minimum pension payments rates.
Retirement Income Strategies
Age Pension
Is the Australian Government-funded income support payment for people who have reached pension age (currently 67), income and asset test limits apply.
Superannuation Pension
A super pension is a series of regular payments made as a super income stream. This doesn’t include government payments such as the age pension. Depending on your age and the type of income stream you receive, you may need to declare different items in your tax return.
Personal Savings and Investments
Any personal investment not held within superannuation, this can include but is not limited to share portfolio, annuities or property income. As these assets are held in your personal name, there are tax consequences you need to consider, what might have been a good investment while you were working might not continue to be the best option during retirement.
