09 March 2026
A transition to retirement (TTR) pension, formally known as a transition to retirement income stream (TRIS), is an income stream that you can access with your super once you have reached your preservation age, which is currently 60, even if you are still working.
The ability to commence this pension will provide flexibility in the years leading up to full retirement, allowing you to draw a limited income stream from your super while remaining employed and can be used along with strategies to boost your super as well as save tax.
If you are reviewing your broader retirement position, you may also find our retirement planning guide helpful.
Superannuation is generally preserved until you meet a condition of release. A TTR pension allows you to access your super as an income stream once you reach preservation age, without fully retiring.
This option is governed by Australian superannuation law and regulated by the Australian Taxation Office (ATO).
You can read the ATO’s official guidance on transition to retirement income streams here:
Both 2 and 3 strategies use Concessional Contributions to boost your super and can save you tax.
Current concessional contribution caps are published by the ATO. This strategy can be complex and should be reviewed carefully to ensure contribution limits and tax outcomes are appropriate.
| Feature | Description |
|---|---|
| Eligibility | Must have reached preservation age, which is age 60 |
| Work status | Is not relevant to the commencement of the pension |
| Access type | A restricted TTR income stream only (no ability to receive lump sums) |
| Minimum annual drawdown | 4% of account balance as a pension |
| Maximum annual drawdown | 10% of account balance as a pension |
| Tax on investment earnings | Up to 15%, same as your super in accumulation phase |
| Tax on income (age 60+) | Generally tax-free |
| Tax on income (under 60) | Not relevant because you can’t commence a TTR pension under 60 |
Official minimum pension payment percentages are available from the ATO
When commencing a TTR pension, that part of your superannuation balance is transferred from your accumulation account into a pension account.
Your super effectively operates as:
This structure allows continued superannuation growth while accessing income from the pension account.
A TTR pension is subject to strict annual withdrawal limits:
The 10% cap distinguishes a TTR pension from a standard account-based pension.
ATO guidance on TTR limits is available here.
Preservation age depends on your date of birth.
| Date of Birth | Preservation Age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| On or after 1 July 1964 | 60 |
The ATO publishes official preservation age rules. In practical terms, the transition of Preservation Age from ages 55 to 60 is now irrelevant. The minimum age to access a TTR pension is now 60.
A TTR pension provides restricted access to your super and is non-commutable. This means you cannot withdraw a lump sum unless you meet a full condition of release.
Conditions of release include:
Official conditions of release are detailed here.
Telling your super fund is worthwhile once you have ceased employment or declared retirement, so they can remove commutation restrictions on your TTR pension. The tax on investment earnings on your pension will be more concessionally being taxed at the 0% rate.
Tax on income payments;
Tax on investment earnings:
The tax authorities impose a tax of up to 15% on investment earnings inside a TTR pension, the same rate applied to your super that is still in the accumulation phase.
This differs from a standard retirement income stream, where earnings are tax-free once a full condition of release is met. ATO taxation details are available here.
If you receive a Centrelink Pension or Allowance, they assess a TTR pension under: The assets test – they count the full account balance. Services Australia explains deeming here. Understanding these interactions is important when considering an overall retirement strategy.
A transition-to-retirement pension is not automatically suitable for everyone.
Key considerations include:
If you are considering your options, you may wish to read our article on when to think about retirement.
Important information
This article contains general information only and does not consider your personal objectives, financial situation or needs. You should consider whether it is appropriate for you and seek professional advice before deciding.
If you would like personalised guidance, VTA Financial Planning offers independent, commission-free financial advice. Learn more about our approach to financial planning, or contact us to discuss your transition-to-retirement options.
