Manage your TTR and Retirement income payments
A Transition to Retirement (TTR) and Retirement income account gives you total flexibility and control of your income in retirement. You set up regular payments for the amount you need, when you need them.
Choose how much you want to be paid (Retirement Income account)
When deciding how much you want to be paid, there are a few things you need to take into consideration especially when fully retired.
Income from other sources
If you have income from other sources, how regularly is this money paid and when. You can alter your First Super Retirement Income payments around the money from other sources. You have complete flexibility.
Access to Age Pension
Your retirement balance, together with other assets and income sources you may have, will form part of Centrelink’s assets and income tests to determine your eligibility for the Age Pension.
Frequency of payments
How often will you be taking regular payments from your TTR or Retirement Income account?
You can choose to take your payments fortnightly, monthly, quarterly, once or twice a year – the choice is entirely yours.
Government minimum withdrawal payments
The Government requires you to withdraw a minimum amount of money from your account each financial year.
The minimum amounts apply to both a TTR and the Retirement Income Account.
The amount you must take out depends on your age and your account balance.
|Your age at 1 July
amount for 2023/24
Only income payments from your TTR or Retirement income account count towards the calculation of the minimum withdrawal amount.
Lump sum withdrawals from your Retirement Income account are not included.
Calculating Retirement income account payments
Julia, age 72
Julia has a remaining retirement balance of $98,000.
At the start of the financial year, she calculates her minimum withdrawal amount for 2023/24.
Julia must withdraw at least 5% of her retirement account balance during the current financial year.
5% x $98,000 = $4,900
Julia will need to withdraw a minimum of $4,900 for the year.
- She decides to set up her withdrawals as quarterly payments of $2,000 each.
- This means she will withdraw $8,000 for the 2023/24 financial year, well above her minimum withdrawal amount of $4,900.
Angus, age 64
Angus has a retirement balance of $460,000.
At the start of the financial year, he calculates his minimum withdrawal amount for 2023/24.
Angus will need to withdraw at least 4% of his retirement account balance during the financial year.
4% x $460,000 = $18,400
Angus will need to withdraw a minimum of $18,400 for the year.
- Angus decides to receive fortnightly payments of $1,000 for the year, meaning he will receive a total of $26,000 in income payments for 2023/24.
- Angus also plans to withdraw a lump sum of $45,000 to pay for some house renovations later in the year, however the lump sum withdrawal will not count towards his annual minimum withdrawal calculation.
Calculating TTR payments
If you have a TTR account, there is a limit on how much you can withdrawal. The maximum you can withdrawal is 10% of your account balance each financial year.
There is no maximum limit on Retirement Income accounts.
Kevin, aged 63
Kevin is reducing his working hours before retiring and has a First Super Transition to Retirement (TTR) Income Account.
He has a TTR account balance of $295,000.
He requires an annual TTR income of $25,000 but needs to check he will meet the minimum and maximum requirements for TTR.
Minimum withdrawal amount: 4% x $295,000 = $11,800
Maximum withdrawal limit: 10% x $295,000 = $29,500/strong>
Kevin determines he will meet the minimum withdrawal limit should he choose to take $25,000 in income payments for the financial year.
- However, he also realises that while he falls under the maximum withdrawal limit for the year, withdrawing over 8% of his account balance means he may run out of retirement savings quickly.
- Kevin decides to speak to a First Super Financial Adviser and complete a complimentary Retirement Health Check to see how long his super savings will last and if he may be eligible for the Age Pension.
How to change your income payments
One of the many great features of a First Super TTR or Retirement Income Account is that you can change your income to suit, whenever you want.
Use the TTR and Retirement income account vary income payments form to make changes to your income payments.
Return the completed form to:
PO Box 666
Carlton South, VIC 3053
Or email the form to us: email@example.com
Once we receive your completed paperwork, it will take approximately 1 to 3 business days to process your request.
We will confirm in writing when the requested changes have been made.
We’re here to help, so let’s talk
Our Member Services Team really enjoy talking with members about super and retirement. So, if you have any questions about TTR or Retirement income payments, we’re ready to help. Call 1300 360 988 or send us an email.