60 and Still Working? How the 'TTR Strategy' Can Save You $10,000 in Tax Before You Retire

⚠️ Age Restriction (2026 Rule): This strategy is strictly for those who have reached the Preservation Age of 60. If you are under 60, you cannot access your Super balance while employed.

🔄 Work Less, Earn More?

You are 61 years old. You earn a solid salary ($150k+), and you want to boost your retirement nest egg before you quit for good.

Most people assume: "I can't touch my Super money until I fully retire."

Incorrect. With a "Transition to Retirement (TTR)" pension, you can legally start withdrawing cash from your Super while you are still working. Smart investors use this cash flow to pay less income tax and accelerate their Super growth.

The "Double Dip" Strategy Explained

The TTR strategy involves two simultaneous financial moves. It leverages the gap between your personal tax rate and the concessional super tax rate.

🛠️ How it works

• Step 1 (Money OUT): You open a TTR Pension account and start withdrawing regular payments. Since you are over 60, these withdrawals are Tax-Free.
• Step 2 (Money IN): You use that extra cash flow to "Salary Sacrifice" a significant portion of your wage into Super. This lowers your taxable income, saving you thousands in tax.

The Tax Savings (A Real Example 2026 Rates)

Let's look at "John" (Age 61, Salary $150,000). He sits in the 37% tax bracket.

Scenario	Standard Employee	With TTR Strategy
Salary Tax Rate	Marginal Rate (39% incl. Medicare)	Reduced (via Salary Sacrifice)
Super Guarantee	12% (Employer pays)	12% + Extra Contributions
Tax on Contributions	N/A	Only 15% (vs 39% Income Tax)

*The "arbitrage" comes from swapping your 39% personal tax rate for the 15% superannuation tax rate.

Chief Editor’s Verdict

The TTR strategy remains the closest thing to a "free lunch" in the Australian tax system for those over 60 earning above $135k. It effectively accelerates your retirement savings without compromising your current lifestyle.

However, beware that investment earnings inside a TTR pension are still taxed at up to 15%, unlike a full retirement pension (0%). Do not navigate this alone. Consult a qualified financial advisor to ensure you don't breach your Concessional Contribution Caps ($30,000+).

[General Advice Warning & Disclaimer]
The information provided in this article is General Information only and does not constitute personal financial advice. TTR rules, tax brackets, and contribution caps are subject to change. Investment earnings within a TTR pension are taxed at 15%. Always consult the Product Disclosure Statement (PDS) of your Super fund and seek advice from a registered Tax Agent or Financial Advisor before making any decisions.