How to Access Your Super Without Retiring

How to Access Your Super Without Retiring

We’ve got a lot to brag about in Australia — stunning beaches, great coffee, free healthcare, and one of the best retirement systems in the world. Our superannuation setup helps millions of Aussies enjoy a comfortable life after work.

But here’s the thing: you spend your whole career watching your super balance grow, and you can’t really touch it until you hit your preservation age and retire (or turn 65). It’s kind of like having a treasure chest you can see but not open.

The Problem

Plenty of people hit 60 and think, “I’m not ready to stop working yet.” Maybe you love your job, or maybe you still need that steady income. Either way, it can feel unfair that your super is sitting there doing nothing for you while you’re still earning a paycheck.

The good news? There’s actually a way to keep working and start using a bit of your super at the same time.

Meet the Transition to Retirement (TTR) Strategy

A Transition to Retirement (TTR) strategy is basically a way to dip into your super while you’re still working. It’s made for people who’ve reached their preservation age (that’s 60 for most of us born after 1964) and want a smoother glide into retirement.

Here’s how it works in plain English:

• You ask your super fund to set up a TTR pension.
• You can take out between 4% and 10% of your super balance each year as income.
• The payments come in regular instalments, not lump sums.
• The money you get from your TTR is tax-free once you’re over 60.
• The rest of your super keeps ticking along and earning investment returns

Why People Do It

TTR strategies can be handy for a few reasons:

• Cut back on work, not income. You can go part-time and use your TTR payments to make up the difference.
• Grow your super faster. You can salary sacrifice more of your pay into super (which is taxed less) and use your TTR income to keep your take-home pay steady.
• Pay off debt. Some people use it to knock down their mortgage or cover big bills before fully retiring.

Just remember: taking money out of your super early will reduce your balance down the track. But if you’re using it smartly — like paying off debt or boosting your savings — it can actually work in your favour.

Case Study 1: Sue reduces her work hour
Sue has just turned 60 and earns $50,000 a year before tax. She decides to ease into retirement by reducing her work to three days a week. This means her income will decrease to $30,000.  Sue transfers $155,000 of her super to a transition to retirement pension and withdraws $9,000 each year, tax-free. This replaces some of her lost pay.

Case Study 2: Bill reduces his tax

Bill is 60 and earns $100,000 a year. He intends to keep working full-time for at least another five years. Bill starts a TTR. He then uses the money withdrawn to re contribute into super and claim a tax deduction. This will reduce his income tax, but also his take-home pay.  He tops up his income by withdrawing up to 10% of his TTR pension balance each year.

When You Finally Retire

Once you hit 65, or you’re 60 and leave your job, you get full access to your super. At that point, your TTR account usually just rolls over into a retirement pension account automatically.

That means:

• You can take out as much as you want, including lump sums.
• All the investment earnings inside that account become tax-free.
• There’s a limit (called the transfer balance cap) on how much of your super you can move into that pension phase, but your fund can help explain that part.

So, Is It Worth It?

TTR strategies don’t suit everyone. For some, it’s better to just keep things simple and stay in your regular super setup until you’re ready to fully retire. For others, it’s a great way to ease into retirement, reduce tax, or make better use of their money while they’re still working.

If you’re curious, chat with your super fund about what’s possible. You might find there’s a smarter, more flexible way to use the savings you’ve been building all these years — without giving up work just yet.