Transition to retirement

Even if your retirement is some years off, you may be able to access some of your superannuation while you’re still working. Here's how.

Transition to retirement

Transition to retirement (TTR) is a government policy that allows people aged over 55 to commence an account-based pension while you are still working. It’s a great way for you to ease into your retirement and take advantage of some of the tax concessions available to pensions.

All you need to do is meet the TTR eligibility rules and transfer all or part of your superannuation benefit to a UniSuper Flexi Pension. This pension can then be used to supplement your other income.

While you're still working, your own and your employer's superannuation contributions will continue to be paid into your UniSuper super account.

UniSuper's TTR eligibility rules are:

• You must have reached your preservation age (currently 55) but be under 65 and still in the workforce. The government has not specified the minimum or maximum hours you must work.
• You can only take a maximum of 10% of your account balance annually while you are in the transition to retirement phase.
• You can only convert your pension benefit it to a lump sum:
  • once you meet a condition of release, such as permanent retirement or reaching age 65,
  • to return the balance of your pension to your accumulation component if you are still working, or
  • to purchase another transition to retirement pension.
• You must have a minimum account balance of $25,000 to purchase a UniSuper Flexi Pension.
• If you only use part of your UniSuper accumulation component for a transition to retirement Flexi Pension, you must leave a minimum balance of $1,000 in your UniSuper super account.
• If you wish to use your defined benefit component to purchase a TTR Flexi Pension you must reduce your working hours by at least 20% (see below).

Please note, if your working hours are reduced, this will reduce the amount of inbuilt Death and Disablement benefits you may be entitled to as part of your UniSuper super membership.

Additional restriction for DBD members wanting to take up a TTR pension

Only DBD members who are genuinely reducing their working hours by at least 20% are eligible to start a TTR Flexi Pension using all or part of their defined benefit component.

To verify the reduction in your working hours, simply get your employer to attest to the reduction in your working hours using the Transition to retirement pension attestation form.

Please note, if you use all or part of your defined benefit component to start a TTR Flexi Pension, you will cease to be a DBD member and become an Accumulation 2 member. Any residual amounts of your defined benefit component will be transferred to an Accumulation 2 account and all future employer and member contributions will be paid into this Accumulation 2 account.

This means that all future contributions together with any residual super benefits that are transferred will be invested in the investment option you have chosen for your accumulation component, and will be subject to investment market volatility. If you have not chosen an investment option, your Accumulation 2 account will be automatically invested in UniSuper’s Balanced option – the Fund’s default investment option.

If you are not reducing your hours but still want access to a TTR Flexi Pension, you may be able to establish one using your accumulation component.

How do I apply for a pension under transition to retirement?

Just complete the Flexi Pension application form contained in the Your guide to pensions product disclosure statement.