MTAA Super Transition to Retirement

To be eligible for a TTR Pension, you must have reached your preservation age and still be working or intend on returning to work.

A MTAA Super TTR Pension can be a tax-effective way to invest.  After age 60, you don’t pay tax on your pension payments. If you’re under age 60, you can get a tax rebate on some of your pension income.

You'll continue to pay 15% tax on investment earnings in your MTAA Super TTR Pension account while in the pre-retirement phase. However, once your MTAA Super TTR Pension enters the retirement phase, your investment earnings will be tax-free.

Contributing more of your before-tax salary to your super via salary sacrifice can also have tax benefits. You’ll pay only 15% tax on before-tax contributions to your super (including employer contributions and salary sacrifice) which may be less than the marginal tax rate payable on your income. This means you could reduce the overall tax you pay while still increasing your super. 

How you can benefit from a TTR Pension:
 
Top up your take home pay while you reduce your work hours 
As you ease into retirement, you may want to reduce your work hours and move to part-time work. With a TTR Pension, you can draw on your super savings to help top up the difference in your take-home pay and maintain your lifestyle. 

or

Add extra to your super in the years before you retire 
While you’re working and your super account remains open, you can continue to receive employer contributions to your super. You can increase your salary sacrifice contributions (up to your contributions cap of $25,000) to give your super a boost before you retire, and then draw payments from your TTR Pension to top up your take-home pay. 

Setting up a pension is easy and we’re here to help if you have any questions.

1. You transfer money from your Super account into a TTR Pension account. Your MTAA Super accumulation account will stay open as long as you maintain a balance of at least $1,000.
2. Your employer will continue to make contributions to your super account and you can also make extra contributions from your before-tax income (called salary sacrifice).
3. You nominate the amount and frequency of the income payments you would like to receive from your TTR Pension (subject to minimum and maximum payment requirements).

Eligibility 

To be eligible for a TTR Pension, you must still be working and have reached your preservation age: 

For more information, refer to the Pensions Handbook.