Transitioning Out of Full-Time Work: Embracing Freedom with TTR

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The Australian dream is changing.

Nowadays, true luxury is freedom. Freedom to choose what to do with your time. Freedom to travel. Financial freedom.

For Australian business professionals with families, the challenge lies in balancing the demands of a full-time career with the desire for a more fulfilling and present life.

Enter the Transition to Retirement (TTR) scheme, a pathway that bridges the traditional grind and the promise of a more balanced, enjoyable existence.

Redefining Luxury: Time and Financial Freedom

The age-old dilemma of having either time or money is a cliché because, more often than not, it’s true.

Full-time employment allows for financial stability and wealth accumulation but often comes at the cost of time.

However, what if there was a way to break free from this binary and enjoy both time and financial security?

The Transition to Retirement (TTR) Scheme: Unveiling a New Chapter

The Australian Government’s Transition to Retirement (TTR) provisions provide a strategic solution for those yearning for a more balanced lifestyle.

This scheme allows individuals to gradually shift from full-time employment to a more flexible arrangement, such as part-time work or consultancy roles.

The beauty of TTR is that you can reduce your work hours without compromising your income and lifestyle. By leveraging TTR, you can access your superannuation as an income stream, bridging the gap between your former full-time wage and your new part-time earnings.

This financial strategy empowers you to maintain your standard of living while freeing up precious time for personal pursuits – like that side hustle you have been talking about for years or perhaps simply more time with the family.

How TTR Works: A Peek into the Mechanics

While TTR offers the promise of a more balanced life, it’s crucial to understand its nuances.

Salary Sacrifice and Tax Benefits

One compelling feature of TTR is the ability to ‘salary sacrifice’, with contributions taxed at a favourable rate of 15%, providing substantial tax benefits. By adhering to the contributions cap, you can maximise your superannuation savings while minimising tax liabilities.

Limits and Considerations

It’s essential to be mindful of minimum and maximum limits for TTR income streams, ranging from 4% to 10%. Additionally, the timing of accessing super benefits can impact long-term savings, emphasising the need for strategic planning.

The ‘non-commutable’ nature of TTR income streams restricts lump-sum withdrawals, emphasising the importance of regular payments.

A Transition to a Retirement Pension becomes viable when reaching your preservation age.

Pros and Cons of TTR: Weighing the Options


1. Continued Super Contributions: TTR allows you to receive super contributions, mitigating the impact of early withdrawals.

2. Tax Benefits: TTR pension payments are tax-free for those aged 60 and older, providing a significant financial advantage.

3. Gradual Retirement Transition: TTR facilitates a smoother transition into retirement, allowing you to plan and savour your leisure time.


1. Impact on Retirement Income: Early superannuation withdrawals may reduce funds during retirement.

2. Complexity: The intricacies of TTR may necessitate financial advice, incurring additional costs.

Navigating the TTR Landscape: Practical Considerations

As the Australian dream evolves, so do the tools and strategies available to achieve it.

The Transition to Retirement scheme emerges as a beacon of hope for those seeking to break free from the time-money conundrum, offering a pathway to financial security and a more present, enjoyable life.

By carefully considering the pros and cons and aligning TTR with your unique circumstances, you can make informed decisions that align with your aspirations for a more fulfilling life.

It’s a journey worth considering, a step towards the true luxury of freedom.

Contact us to learn more about transitioning out of full-time work and utilising the TTR.

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