Transition to Retirement

If you’re looking to work less, but aren’t quite ready to retire, a transition to retirement account could be what you need.


Starting your retirement doesn’t have to be a hard line in the sand, there’s another option that allows you to ease into it. A Transition to Retirement (TTR) strategy allows you to access up to 10% of your super per year while you continue working, as long as you’ve reached the age when you can access your super (often referred to as preservation age). 


Why Transition to Retirement (TTR)?


Top up your take-home pay

Top up your take-home pay

Use your TTR account to supplement your income.

Save on tax

Save on tax

If you’re over 60, payments from your TTR account are generally tax free.

Keep growing your super

Keep growing your super

Continue contributing to grow your super and take advantage of potential investment returns.

When can I access my super?

If you were born on or before 30 June 1964, you’ve already reached preservation age. That means you can start accessing your super now.

If you were born after 30 June 1964, your preservation age is 60.

If you’re 65 or over, or already retired from the workforce, you can start an allocated pension account and access your super.

Learn more about our allocated pension account

Tools and calcuators

Is a TTR strategy right for everyone?

Tools and calcuators

A Transition to Retirement strategy can be a useful and convenient way to ease into retirement, but it can be complex. A financial adviser can help you decide if it’s right for you.  

Some things to consider before starting a TTR strategy include:

  • It may affect your government benefits, or those of your partner.
  • You may lose your insurance benefits if you don’t maintain a certain balance in your super account.
  • The earlier you start accessing your super, the less you might have when you fully retire. 

Learn more about advice options

Smart Bundle, your hassle-free start to retirement

Set up your TTR account the easy way, with preselected pension payment and investment strategies that are fine-tuned as you age. Smart Bundle is a quick and easy solution for members who want to know their retirement is in good hands. You can apply online using our digital form.

Learn more about Smart Bundle

Tools and calcuators

TTR in a nutshell

  • How do I open a TTR (Transition to retirement) account?
    You can transfer some or all of your super to a Mercer SmartRetirement Income TTR account.

  • Should I keep my Mercer Super account?
    If you leave at least $6,000 in your Mercer Super account, you can keep your insurance benefits and continue receiving employer contributions.

  • How much can I receive from my TTR pension each year?
    You can access between 4% and 10% of your TTR account balance each financial year.

  • Where can I find the Product Disclosure Documents?
    You can find the PDS on our Disclosure Documents page under SmartRetirement Income.
  • How often can I receive payments?
    You can choose to receive your payments annually, half-yearly, quarterly, monthly or twice monthly.

  • What is the minimum amount needed to open a pension account?
    You need to invest at least $10,000 to start a TTR pension account with Mercer SmartRetirement Income.  

  • What happens to my TTR account when I turn 65?
    When you turn 65, your TTR account is automatically converted to an allocated pension, where you’ll enjoy tax free investment earnings.

The right advice can help you make the right choice

No matter where you’re at in life, the right advice at the right time can help you take charge of your super and retire with confidence. With Mercer Super, accessible advice is always within easy reach. Request a callback.


Frequently asked questions

  • Do I need to keep my super account when I start a TTR?

    If you’re still working and receiving employer contributions (Super Guarantee), you will need to have an open accumulation account. Contributions cannot be paid into pension accounts (including TTR accounts).

    If you are a member of your employer’s corporate superannuation plan we likely won’t be able to transfer the full balance and close the account until we receive confirmation from your employer that you have ceased employment, and the final contribution has been paid into your account. This may delay the time it takes for your pension to be set up.

  • How is my money invested in a TTR account?

    Your money is invested in one or more investment options, which you can choose or change at any time via the member website, by completing a form or contacting our Contact Centre.

  • What are the tax benefits of a TTR account?

    The tax benefits of a TTR strategy can vary depending on your personal circumstances, so we recommend seeking financial advice before opening a TTR account.  All TTR investment options are taxed at 15%, the same as regular super accounts.

  • Will I lose my insurance if I open a TTR account?

    You cannot have insurance as part of your pension account. So, if you transfer your full balance from your super account, any insurance on that account will cease when the account closes.

    If you leave your accumulation account open, with sufficient funds to meet the minimum balance requirements and to cover the annual insurance premiums, you will keep any insurance you have on your accumulation account.

  • What are “taxed” and “non-taxed” investment options?

    “Taxed” investment options are for TTR pension members, as TTR investment earnings are taxed at 15% (same as regular super accounts). That is why these options include “Taxed” in the name.

    “Non-taxed” investment options are for allocated pensions as members over 65, or who have ceased work with the intention to permanently retire, aren’t charged tax on any investment earnings in their allocated pension.

  • What happens to my TTR account when I turn 65?

    A TTR automatically changes to an allocated pension when you turn 65. This means your investments will change to the “non-taxed” version and the 15% tax on investment earnings will no longer apply. Additionally, there will no longer be a limit on the amount you can withdraw from your pension account each year.

  • Can my employer contribute to my TTR account?

    No pension accounts, TTR or allocated pension accounts, can receive contributions. Members would need to have an accumulation account for their employer to make contributions.


Not for you?

Woman at beach

Are you aged 65, or retired for good?

An allocated pension account might be a better fit.

Learn more

Woman at beach

Are you still working and wondering how to grow your super balance?

There are still opportunities for you to grow your balance and get the most out of your super.

Learn more

Need more help? We’ve got you covered.

Have questions about Mercer Super or need more information about becoming a member? We’d love to hear from you.

Member Online Support

Member Online support

Log in to your account for more information or to submit an online enquiry.

Contact Our Helpline

Contact our helpline

Visit the member support page or call 1800 682 525, Monday to Friday, 8am-7pm (AEST/ AEDT).


Disclaimer: Issued by Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust ABN 19 905 422 981 (‘Mercer Super’). Any advice is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information, you need to take into account your own financial circumstances. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, Financial Services Guide and Target Market Determination (TMD) before making a decision about the product, or seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take.

IMPORTANT: Please note that any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information.

The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation and government press releases at the date of publication which we believe to be reliable and accurate. Neither Mercer nor any of its related parties accepts any responsibility for any inaccuracy.