Retire with more or retire sooner?

The choice is yours with a Transition to Retirement strategy.


Want to ease yourself into retirement? A Transition to Retirement strategy may allow you to work less for the same income.

By moving your super into a retirement account, you can access extra income to top up the reduction in your take-home pay. It is important to understand that this option can eat into your retirement savings.


  • Ease into retirement by reducing your working hours
  • Take-home pay remains the same
  • Save on tax


How John reduced his working hours without having to reduce his income

John, aged 58, is working full time, earning $75,000 plus his super guarantee contribution. He currently has a balance of $250,000 in his iQ Super account.

John is looking for a lifestyle change, and has been considering reducing his working hours to 25 hours per week.

John decides that he is going to set up an iQ Retirement™ account so he can take an income stream from his super to replace the reduction in his salary.

By starting a Transition to Retirement strategy, John pays $4,006 less tax. This enables him to work 10 hours less, but maintain the same take-home pay.

This strategy does come at a price as John’s retirement savings will reduce over time as he draws down pension payments. He has factored this into his long-term retirement income plans.

  Current situation With a TTR
Gross income $75,000 $53,500
Add TTR payment $0 $17,494
Taxable income $75,000 $70,994
Less tax payable ($17,422) ($13,416)
TAKE HOME PAY $57,578 $57,578
The illustration above is based on the tax rates and limits applying for the financial year 2017/18 (Income Tax includes the Medicare Levy). The superannuation guarantee is 9.5% and, 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.
Site preferences