Transition to retirement Q&As: Part 2

In this guide

Q: Can my super fund still receive super guarantee contributions when I am taking a TTR?
Q: Can I use the contribution splitting strategy if my spouse is already accessing benefits under a transition-to-retirement pension?
Q: I have a transition-to-retirement pension and my employer still makes contributions to my fund. How do I add these contributions to my transition-to-retirement pension?
Q: How can I determine if my SMSF allows members to access benefits through a transition-to-retirement pension?
Q: Is it possible that TTR pensions will no longer be allowed in the future and result in existing pensions having to cease?
Q: Can I start a transition-to-retirement pension during the year, or do I need to wait until the following 1 July?
Q: What are the pro-rata rules for a transition-to-retirement pension?
Q: Is it still worthwhile starting a transition-to-retirement pension where the member balance is not large, for example a member balance around $500,000?
Q: Are the funds drawn from a TTR added to your taxable income for the FY along with other taxable income received?

How do transition-to-retirement (TTR) pensions work? Can I still contribute to my fund? What are the trust deed requirements for a TTR?

These are some of the common questions we have received from our readers, which we have answered below.

We also recommend you watch our webinars on TTRs:

Q: Can my super fund still receive super guarantee contributions when I am taking a TTR?

Yes, super fund trustees can still accept super guarantee (SG) contributions when the relevant member is already accessing their benefits, including access via a transition-to-retirement pension.

Keep in mind that all super contributions, including SG contributions, need to be made to the member’s accumulation account. They can’t be contributed to a pension account the member may have, including a TTR pension account.

Q: Can I use the contribution splitting strategy if my spouse is already accessing benefits under a transition-to-retirement pension?

About the author

Garth McNally

Garth has worked in the Australian Superannuation industry for over 20 years with a specific focus on self-managed super funds. He provides ongoing support and training to individuals as well as to professionals working in the superannuation area, including advisers, accountants and lawyers. He is a regular contributor to industry publications and to the leading professional bodies including Chartered Accountants Australia & New Zealand (CA ANZ).