Retire with more or retire sooner?

The choice is yours with a Transition to Retirement strategy.


The Income Booster helps to top up your income to improve your current cash flow position.

With this option, you continue to work full-time and use your super to increase your take-home pay (by moving your super into a retirement account and drawing down an income stream). The catch? While this can improve your cash flow in the lead up to retirement, you will start to deplete your retirement savings.


  • Take-home pay increases


How Anne topped up her income.

Anne, aged 60, is working full time, earning $72,000 plus her super guarantee contribution. She currently has a balance of $250,000 in her iQ Super account.

Anne is looking to increase her take-home pay, so she can improve her current cash flow position.

She decides that she is going to set up an iQ Retirement account and use an income stream from her super to help meet her short-term income needs.

Anne takes the maximum pension amount of $25,000 (which is 10% of her super balance). Because Anne is over 60, this pension amount attracts zero tax – so adds an additional $25,000 to her annual overall take-home pay.

This strategy does come at a price to Anne’s retirement savings as it will reduce over time as she draws down pension payments. Anne has spoken with a financial adviser to understand the pros and cons of this strategy, and has a plan in place to ensure she still has enough retirement income when she’s ready to retire or reduce her working hours.

  Current situation With a TTR
Gross income $72,000 $72,000
Add TTR payment $0 $25,000
Taxable income $72,000 $72,000
Less tax payable ($16,387) ($16,387)
Take home pay $55,613 $80,613
The illustration above is based on the tax rates and limits applying for the financial year 2016/17 (Income Tax includes the Medicare Levy). The superannuation guarantee is 9.5% and, for the 2016/17 financial year an individual under the age of 49 can make a before-tax contribution to super of up to $30,000, or $35,000 for those aged 49 or over on the last day of the previous financial year. For the 2017/18 financial year an individual can make a before-tax contribution of $25,000. Low income tax offsets have been ignored for the purpose of the above illustration. Source: Russell Investments. This illustration is general in nature and is not prepared having regard to your objectives financial situation or personal needs.