Transition to retirement

Keep your take-home, bank the tax

From age 60 you can salary-sacrifice into super and draw a tax-free TTR pension to replace the pay you gave up — pocketing the gap between your marginal rate and super's 15% every year, with no drop in take-home.

Transition to retirement (TTR)
From age 60 you can salary-sacrifice into super and draw a tax-free TTR pension to replace the take-home you give up — quietly banking the gap between your marginal rate and super's 15% each year.

By salary-sacrificing $15,000 and drawing a tax-free TTR pension of $10,200, you keep the same take-home and add to super each year

$2,550

extra into super a year in tax saved — your take-home holds at $67,280.

Marginal rate

30%

Super tax on sacrifice

15%

Tax-free pension

$10,200

Net into super

$2,550

For people aged 60+. The sacrifice is taxed at 15% going into super instead of your 30% marginal rate; the TTR pension is tax-free from age 60, so it restores the take-home you gave up. Open the panel for the full mechanics. A guide, not financial advice.