The FisCalc
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Transition to Retirement
Calculator

Model your TTR pension strategy — salary sacrifice into super while drawing a pension to maintain take-home payRates current as at 1 July 2025 · ATO FY2025–26

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✓ TTR available (age 60+)

$450,000

$120,000

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$15,000

SG contribution (12%):

$14,400

Cap remaining:

$600

Total concessional cap: $30,000/yr (incl. SG)

6.0%

$27,000 per year from super

Minimum: 4% | Maximum: 10%

// RETURNS & FEES

7.0%
0.6%
2.5%

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Annual tax saving

$5,175

Super boost at retirement: -$100,920 | 7 year TTR period

Income Comparison

WITHOUT TTR

Gross salary$120,000
Income tax$29,467
Medicare levy$2,400
Take-home pay$88,133

WITH TTR

Salary (sacrificed)$105,000
Income tax$24,592
Medicare levy$2,100
TTR pension (tax-free)$27,000
Net income$105,308
△+$17,175

Super Balance at Retirement (inflation-adjusted)

Without TTR
$740,228
With TTR
$639,308

Extra super at retirement

-$100,920

TTR period

7 years

Total tax saved

$36,225

TTR Strategy Update (July 2017+)

TTR pensions have been less tax-effective since July 2017 when earnings tax was introduced. The main benefit now is the concessional contribution tax saving. The TTR pension itself is tax-free to recipients over 60, but earnings within the fund are taxed at 15%. Get advice if you're pushing near the $30,000 concessional cap.

Year-by-Year Projection

YearAgeWithout TTRWith TTRDifferenceTax Saving
060$493,200$481,200-$12,000$5,175
161$539,165$514,397-$24,768$5,175
262$588,071$549,718-$38,353$5,175
363$640,108$587,300-$52,808$5,175
464$695,475$627,287-$68,187$5,175
565$754,385$669,834-$84,551$5,175
666$817,066$715,103-$101,963$5,175
767$883,758$763,270-$120,488$5,175

Disclaimer: This calculator uses simplified tax and super rules. Individual circumstances vary — contribution caps, division 293 tax (for high earners), and fund rules may affect your outcome. TTR strategy effectiveness reduced since July 2017. Not financial advice. Always consult a qualified financial adviser.

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Annual tax saving: $5,175
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How a Transition to Retirement Strategy Works

A Transition to Retirement (TTR) pension allows Australians who have reached their preservation age — 60 for anyone born after 1 July 1964 — to access their superannuation as a pension income stream while they are still working. This unlocks a tax arbitrage loop: you salary sacrifice a larger portion of your income into super (taxed at 15% on the way in), and simultaneously draw down from your TTR pension to maintain or replace your take-home pay. If structured correctly, your take-home pay stays the same while your super balance grows faster or your mortgage decreases quicker.

The tax-arbitrage loop — a worked example

Consider someone aged 61 earning $110,000 with a $350,000 super balance. Their marginal rate is 32.5% plus 2% Medicare levy. By salary sacrificing an additional $20,000 per year into super, their income tax saving is approximately $6,900 (34.5% × $20,000). They then draw $20,000 per year from their TTR pension to replace the sacrificed income. After age 60, TTR pension payments are completely tax-free. The net result: the same take-home pay, $6,900/year less going to the ATO, and $20,000 more going into super each year. Over 5 years, this can meaningfully accelerate the super balance relative to not using the strategy.

Limitations and risks post-2017

Prior to 1 July 2017, TTR pension funds were held in pension phase and earned tax-free investment returns. The government changed this — TTR pensions now remain in accumulation phase and continue to pay 15% tax on earnings. This significantly reduced the attractiveness of TTR strategies, particularly for those in lower tax brackets where the salary sacrifice saving is modest. TTR remains most valuable for individuals in the 37–47% tax brackets with meaningful super balances and at least 3–5 years before full retirement.

Can I still work full-time while on a TTR pension?
Yes. TTR is explicitly designed for people who are still working — it does not require you to reduce your hours, though many people combine it with a gradual reduction to part-time work. You can maintain full-time employment while drawing a TTR pension, as long as you are within the minimum and maximum drawdown limits. The minimum annual drawdown is 4% of the account balance; the maximum is 10% per year while in TTR phase. You cannot draw a lump sum from a TTR pension.
What is the preservation age?
Preservation age is the minimum age at which you can access your superannuation (subject to meeting a condition of release). For anyone born after 1 July 1964, preservation age is 60. For those born before this date, preservation age was 55–59 depending on birth year — these cohorts have already passed preservation age. Once you reach age 65, you can access super unconditionally regardless of employment status. Accessing super before preservation age is generally not permitted except in specific hardship or compassionate grounds circumstances.
Does TTR affect my Age Pension entitlement?
TTR pension balances count toward Centrelink's assets test, as does the account-based pension income under the income test (using the deeming provisions). If you are approaching Age Pension eligibility (67 for most Australians), a large TTR pension balance could reduce your Age Pension entitlement under the assets test. The interaction between TTR drawdowns, concessional contributions, and Age Pension means-testing is complex. This is one area where personal financial advice has clear value — a small structuring difference can produce meaningfully different outcomes.

// SALARY_SACRIFICE

Model the tax saving from salary sacrifice contributions that underpin the TTR strategy.

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// RETIREMENT_PROJECTION

See how TTR drawdowns and accelerated contributions affect your balance at retirement.

Retirement Projection Calculator →
General information only. TTR strategies are complex and outcomes vary significantly by individual circumstances. This calculator does not account for Division 293 tax, Age Pension means-testing, or individual fund rules. Consult a licensed financial adviser before implementing a TTR strategy.

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