Summary: Transition-to-retirement pensions allow you to draw on your super while you are still working. They also allow you to keep contributing to super as you draw a pension, which for most people will increase cashflow and/or your super balance. Another advantage is that when you move assets from accumulation to pension, the assets backing that pension become tax-free.
Key take-out: For those over 60 and still working, it’s highly likely you are paying more tax than necessary if you’re not on a TTR pension.
Key beneficiaries: SMSF trustees and superannuation accountholders. Category: Superannuation.