Phone 1800 444 396
Post GPO Box 264, Brisbane QLD 4001

Transition to retirement

With a Transition to Retirement Pension account you can receive income from your super while you work and a number of other advantages.

Info sheet - January 2023

What is a Transition to Retirement Pension account?

A Transition to Retirement Pension account allows you to access your super periodically while you work once you have reached your preservation age. Under Australian Government transition to retirement rules, you can withdraw between 4% and 10% of the account balance as a pension, however lump-sum withdrawals cannot be made until you permanently retire.

What are the benefits?

A Transition to Retirement Pension account can supplement your income leading up to retirement or help you reduce the amount of tax you pay while increasing your retirement savings. You could use a Transition to Retirement Pension account to:

  • top up your income as you work fewer hours or take a lower paid position leading up to retirement
  • receive additional income without changing jobs or increasing your work hours
  • receive regular income from your super and redirect part of your salary to super through salary sacrifice, while still working full time.

Am I eligible?

You can open a Transition to Retirement Pension account with a starting balance of at least $50,000 when you reach your preservation age.

What is my preservation age?

Your preservation age is set by the Australian Government and is based on your date of birth.

If you were born... Your preservation age is...
Before 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
From July 1964 on 60

How does it work?

Simply nominate how much of your super you would like to transfer to the Transition to Retirement Pension account and the amount of regular income you would like to receive. Your pension income must be at least 4% but no more than 10% of the account balance on 1 July each year. You can nominate to receive your pension payments fortnightly, monthly, quarterly, biannually or annually.

Supplement your income

If you are still in the workforce, a Transition to Retirement Pension account could help you to cut back your work hours or take a lower paying job. You can receive regular pension payments to supplement the income you have lost by working less. Or, you could stay in the same job and receive regular additional income.

Reduce your tax, increase your super

If you are aged 60 or over, you can receive tax-free income from a Transition to Retirement Pension account. At the same time, you can salary sacrifice some of your salary into your Accumulation account (subject to the concessional contributions cap) where it will be taxed at 15% on entry to the fund.

So, you could effectively pay 15% tax on the portion of your salary that you contribute to super, rather than the tax rate you currently pay when you receive this money as salary.

This strategy can also be used if you have reached preservation age but are still under age 60, though some tax may be payable on your pension income.

Taxation of investment earnings for transition to retirement (TTR) pensions

From 1 July 2017, the Australian Government removed the tax-exempt status of investment earnings that support your TTR pension, regardless of when the TTR pension started.

This means investment earnings from your TTR pension are taxed at a maximum rate of 15% in the fund (the same rate that applies to accumulation earnings).

Starting your pension

A pension can only be started with one amount from your super. So, if you have more than one superannuation account you could consider combining them all into your current account before transferring to your pension.

Any contributions we receive from you or your employer will not be added to your Transition to Retirement Pension account. They will be added to your Accumulation account.

Working out your minimum and maximum pension amount

To calculate your minimum pension payment amount for a full financial year, simply take the balance of your account and multiply it by the minimum factor of 4%. You can select a pension amount between 4% and 10% of your account balance. This calculation takes place again at 1 July each year.

It's unlikely your pension will start on 1 July, so for the first year your minimum pension income will be a proportion of the full year pension amount. This proportion is based on the number of days from the date of opening the account to 30 June. The maximum amount is not proportioned in this way, and is always 10% p.a.

Important information for defined benefit members

If you are a member with a defined benefit please read the information below that relates to the type of account you have and contact us to learn more.

Defined Benefits Fund members

If you are a Defined Benefits Fund member and would like to start a pension, you have two options. You can either:

  • use the amount in your accumulation balance, provided there are enough funds or
  • close your defined benefit and use some or all of that amount to start an Transition to Retirement Pension account. Your defined benefit will be transferred to your Accumulation account before the amount you nominate is transferred to start an Transition to Retirement Pension account.

Defined Benefit accounts (formerly City Super)

Funds from a Defined Benefit account cannot be used directly to open a Transition to Retirement Pension account, but members may be able to convert their defined benefit to an Accumulation account if their request is approved by their employer. Contact us for more information.

Before closing a defined benefit...

When a defined benefit is closed, future contributions will be added to an Accumulation account and the entire balance will grow with investment returns (positive or negative). You should make sure you fully understand the impact of closing your defined benefit.

You can read more about the Transition to Retirement Pension account in our Pension account Product Disclosure Statement (PDS).

Any questions?

We’re here to help. Our trusted and reliable team can work with you to grow your savings and plan a strong financial future. Call us on 1800 444 396 or visit our website at

LGIAsuper Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for LGIAsuper (ABN 23 053 121 564) (RSE R1000160) (the Fund) trading as Brighter Super. Brighter Super products are issued by the Trustee on behalf of the Fund. Brighter Super may refer to the Trustee or LGIAsuper as the context may be.

This info sheet provides general information only and does not take into account your individual objectives, financial situation or needs. As such, you should consider whether it is appropriate in light of your own objectives, financial situation and needs prior to making any decision. You should consult a licensed financial advisor if you require advice which does take into account your personal financial circumstances. You should also obtain and consider the Product Disclosure Statement (PDS) before making any decision to acquire any products. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at