How it works
Starting a TTR Flexi Pension can help you create a retirement strategy that suits you. There are three different ways you can use a TTR Flexi Pension. We recommend you speak to an adviser about whether these transition-to-retirement strategies are right for you.
Keep working and boost your super
Salary sacrifice some of your income to help boost your super balance, and replace what you’ve sacrificed with income from your TTR pension.
You can have the same take-home pay, but you'll be putting more money into super for your retirement.
Reduce your working hours, but keep the same income
Ease into retirement by reducing your work hours. You can supplement your reduced income with your TTR pension.
This means you can stay on the income you’re used to, while working less. Just be aware that this will reduce how much super you have when you fully retire.
Increase your current income
You can receive an annual income from your TTR pension on top of your current income, until you fully retire.
This means more money in your pocket now, but it will reduce how much super you have when you fully retire.
Learn more in the Transition to retirement fact sheet (PDF, 77 KB)
Tax and your TTR pension
There are two ways your TTR pension can be taxed.
Tax on investment earnings
Investment earnings are taxed at up to 15%, like your other investment earnings in super.
Tax on payments and lump-sum withdrawals
When you’re aged between 55-60, any TTR pension income is included in your assessable income and taxed at your marginal tax rate. A 15% tax rebate is available to reduce the tax payable on the taxable component of your pension.
When you’re aged 60 or over, TTR pension income is tax free.
Remember the transfer balance cap
When you turn 65 or get full access to your super before you turn 65 (for example, when you retire), your TTR Flexi Pension will be considered to be in retirement phase and subject to the general transfer balance cap (currently $1.7 million).
For more information, refer to the 'How retirement income is taxed' section in the Flexi Pension Product Disclosure Statement (PDF, 3.1 MB).
Fees
For full details of our product fees, including how and when they're paid, read the Flexi Pension Product Disclosure Statement (PDF, 3.1 MB).
| Type of fee or cost | Amount |
|---|---|
| Administration fees and costs1 | $0 for each TTR pension5 |
| Investment fees and costs2,3,4,6,7 | 0.39% per year |
| Transaction costs2,3 | 0.06% per year |
| Investment switching fee | $0 for the first switch per account each financial year Each subsequent switch within that financial year is $9.85 |
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Things you need to know
1 If your account balance is less than $6,000 at the end of UniSuper's income year, certain fees and costs charged to you in relation to administration and investment are capped at 3% of the account balance. Any amount charged in excess of that cap will be refunded.
2 The investment fees and costs and transaction costs shown above are indicative only and are based on the investment fees and costs and transaction costs for the year ended 30 June 2021, including several components which are estimates. The actual amount you’ll be charged in subsequent financial years will depend on the actual fees and costs incurred by the Trustee in managing the investment option. Investment fees and costs include an amount of 0.02% for performance fees. The calculation basis for this amount is set out in the product disclosure statement. See more about investment costs.
3 The investment fees and costs and transaction costs for other investment options are set out in the Flexi Pension PDS. They are calculated on the same basis, and paid at the same frequency and in the same manner as the Balanced investment option.
4 A TTR – Flexi Pension ceases to be paid under TTR rules once you have reached age 65 or notify us that you have satisfied a condition of release allowing unrestricted access to super prior to age 65. When a TTR – Flexi Pension ceases to be paid under TTR rules, administration fees and costs and investment fees and costs will be charged as a standard Flexi Pension member as set out above.
5 An Operational Risk Reserve (ORR) is funded out of investment-related charges which are included in the investment fees and costs for each TTR – Flexi Pension option.
6 Refer to ‘Additional explanation of fees and costs’ in the Flexi Pension PDS.
Before you apply
Key things to know before applying.
For full details you should read the Flexi Pension Product Disclosure Statement (PDF, 3.1 MB) before applying, and consider getting advice from a qualified financial adviser.
Apply for a TTR pension
To apply for a TTR pension, complete the application in the Flexi Pension Product Disclosure Statement (PDF, 3.1 MB).
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