unlock your super before you retire

Did you know that you can access your super while you’re still working?

With a HESTA Transition to Retirement (TTR) strategy, you can top up your income while you
reduce your working hours or top up your super in the years leading up to retirement.


why a TTR strategy makes sense

 

It can help boost your super account balance while you continue working

 

It can pay you up to 10% of your super balance in a year

 

You pay only 15% tax on investment earnings (instead of your usual tax rate)

 

It can help you reduce your working hours without reducing your income

 

It can help offset salary sacrifice contributions without reducing your take-home pay

 

You’re typically eligible to receive tax-free income stream payments from age 60

 

 

 

here's how it could work

 

1. Reduce your tax and boost your super before you retire



Example strategy

  • Sharon starts a HESTA Transition to Retirement (TTR) Income Stream using $160,000 of her super balance (leaving $6,000 in super to retain her insurance).
  • She draws down from her TTR. She’s allowed a maximum of $16,000 in her first year and then 10% of her account balance at 1 July each subsequent year.
  • Sharon sets up salary sacrifice to contribute more money into her super account (before-tax) and uses her TTR payments to supplement her salary.


What does this mean for Sharon?

  • Sharon must withdraw at least 4% of her account balance each year - this could force her to withdraw cash even if she doesn’t need it.
  • However, Sharon can use the tax savings from her TTR account to boost her super.
  • Her income stream payments are generally tax-free, and investment earnings will continue to be taxed at up to 15%.

 

Crunch the numbers

  Without a TTR strategy Using a TTR strategy
Salary - ordinary time earnings $90,000 full time $90,000 full time
Superannuation guarantee (SG) contributions $10,800 $10,800
Before-tax contributions $0 $19,200
Add income stream payments Nil $13,056 (100% tax-free over 60)
Tax paid on salary^ $19,588 $13,444
Net income $70,412 $70,412
Contributions tax* $1,620 $4,500
Total net impact on retirement savings
for 1 financial year		 Nil $3,264

 

Important to note: this case study is over a single financial year and excludes fees and costs, insurance fees, investment earnings.
Where salary is mentioned, this refers to ordinary time earnings (OTE).

^Tax rates are for the 2025-26 financial year. Please visit ato.gov.au for current marginal tax rates.

*Contributions tax at 15%. 

 

 

2. Reduce your work hours in the lead up to retirement



Example strategy

  • Dom starts a HESTA Transition to Retirement (TTR) Income Stream using $196,000 of his super balance (leaving 6,000 in super to retain his insurance).
  • He draws down from his income stream within allowable maximum range, which is a maximum of $19,600 in his first year and then 10% of his account balance at 1 July each subsequent year.
  • Dom cuts back his work hours, but maintains his income by supplementing his reduced salary with his TTR payments.


What does this mean for Dom?

  • Dom can reduce his working hours without reducing his income.
  • Income stream payments are generally tax-free, and investment earnings will continue to be taxed at up to 15%.


Key considerations

By using his super to offset his reduced income, Dom will retire with less super.

 

Crunch the numbers

  Without a TTR strategy Using a TTR strategy
Salary - ordinary time earnings $64,000 full time $38,400 part time (3 days per week)
Superannuation guarantee (SG) contributions $7,680 $4,608
Before-tax contributions $0 $0
Add income stream payments Nil $18,332 (100% tax-free over 60)
Tax paid on salary^ $11,268 $4,000
Net income $52,732 $52,732
Contributions tax* $1,152 $691.20
Total net impact on retirement savings
for 1 financial year		 Nil -$20,943.20

 

Important to note: this case study is over a single financial year and excludes fees and costs, insurance fees, investment earnings. Where salary is mentioned, this refers to ordinary time earnings (OTE).

^Tax rates are for the 2025-26 financial year and exclude the low income tax offset (LITO) and the low and middle income tax offset (LMITO).
The before-tax contributions cap of $30,000 includes superannuation guarantee (SG) contributions, salary sacrifice contributions and personal deductible (before-tax) contributions.
Members who earn $37,000 or less for ‘adjusted taxable income’ are eligible for the low income superannuation tax offset (LISTO) of up to $500 against the contribution tax paid on before-tax contributions.

The above case studies have excluded potential LISTO benefits. Please visit ato.gov.au for current personal income tax rates and the definition of ‘adjusted taxable income’.

Net impact has been calculated with consideration to the lower income reducing this super guarantee contribution and drawing down from the income stream.

#Contributions tax at 15%.

 

 

 

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