With a TTR strategy, you can start drawing down a portion of your super as income while you continue to work. This can help you to supplement your income, reduce your working hours, or work in a less stressful role as you approach retirement.
Here are the key features of a TTR strategy:
1. You must have reached your preservation age to start a TTR strategy.
2. You can access up to 10% of your super balance each financial year as income payments.
3. You must continue to work and receive a regular income to be eligible for a TTR strategy.
4. Your employer will continue to make contributions to your super as normal, and you can also make personal contributions if you wish.
5. Any income you receive from your TTR strategy is taxed at your marginal tax rate, less a 15% tax offset.
6. You can continue a TTR strategy until you retire or reach the age of 67, whichever comes first.
A TTR strategy can be a useful way to supplement your income in the lead up to retirement, but it's important to consider the potential tax implications and seek financial advice before making any decisions. A financial adviser can help you to determine if a TTR strategy is suitable for your individual circumstances and assist you in developing a comprehensive retirement plan.