The Transition to Retirement Income account is designed for members getting ready to retire. Depending on your age and when you retire, you'll then be moved to a Retirement Income account.
When you turn 65 we’ll change your Transition to Retirement Income account to a Retirement Income account. This means you’ll no longer have a maximum payment limit and your investment earnings become tax-free.
When you tell us you’ve retired or you’ve changed jobs after turning 60, we’ll convert your Transition to Retirement Income account to a Retirement Income account. Please contact us if you've retired or changed jobs.
Your account will move from the ‘transition to retirement (TTR)' to the ‘retirement’ phase. If you're under 65 and want to start your TTR account again you may need to meet an additional condition of release.
| Transition to Retirement Income account | Retirement Income account | |
|---|---|---|
| How much can I withdraw each year? | A maximum of 10% annually | No annual limit |
| How are investment earnings taxed? | Up to 15% | Tax-free |
| Eligible to receive a one-off Retirement Bonus | No | Yes. Activating a Retirement income account can earn you a bonus of up to $9,500. Find out more about the Retirement Bonus. |
From 1 July 2017 there’s a limit of how much super you can move into tax-free retirement phase accounts. This limit is known as the ‘transfer balance cap’.
The general transfer balance cap is $1.9 million for the 2024-25 financial year, but if you've already started a retirement phase account your personal transfer balance cap may be different.
The ATO manages the transfer balance cap and it includes retirement phase account across all you super funds. You can check your personal transfer balance cap by contacting the ATO or logging into MyGov.
If you exceed the transfer balance cap you may have to pay more tax, so it’s important to consider how much of your balance you choose to move into a Retirement Income account and what options you have for any amount over the cap. The ATO may also get you to move excess money from your Retirement Income account and the indexation of your transfer balance cap may be impacted. Special rules also apply for Income accounts that are setup for a reversionary beneficiary following the death of a member.
For more information go to the ATO website.
The transfer balance cap does not apply to:
