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With TTR and Super access both available at 60 (subject to condition of release) I don't think TTR is worth the bother now. Meet a condition of release at 60, start a pension, get the tax free benefits and then go back to work.
Such helpful advice thank you so much. Question I am now 60 full time employment, happy to keep working full time for a few years, but can I start a TTR pension now and keep working full time and use the pension payments from the TTR to pay down my home mortgage?
Apart from having to reach preservation age, what other requirements are need to access TTR? Mainly, Do i need to go part time or can I remain full time whilst accessing TTR? Thanks
You can remain full-time. There are generally no other requirements. Feel free to get in touch with us here www.torowealth.com.au/ if you would like personal advice in relation to transitioning into retirement
Hi Chris.....Can you contribute some of the unused income from the yearly TTR and re-contribute it back to your standard accumalation super and is there any tax applied if it is seen as a personal deposit
Your employer doesn't have to agree to salary sacrifice and you are free to draw a pension (obviously subject to the rules) so you can follow this strategy to boost super of disposable income. You may be referring to your employer not agreeing to reduced hours which of course they do have to agree to.
Thank you for your Contribution, great video. I'm 59 yrs old and currently on workers compensation and still getting low income from the insurance company. Can I apply to TTR small amount lump sum payment.?
A TTR pension allows you to receive pension payments of between 4% and 10% of your account balance each financial year - but this can usually be received as a one-off payment per year. Just be mindful of tax on withdrawals under age 60. Also, make sure you understand the risks of starting a TTR pension. Seek professional advice first. If you do not already have a trusted adviser, feel free to get in touch with us here www.torowealth.com.au
If we have an investment property within our SMSF worth 750 K can the value of this property go into the TTR pension. I am 60 but my wife is 48. Thanks, Alan
Hi Chris, really useful. If I start a TTR at aged 60, and continue working and contributing to the accumulation fund (adding SG + concessional contributions [claiming a tax deduction for this] + ECC [upto $120,000 from next year ?] - is this correct ? Then at age 65 my transfer balance cap is set, because my TTR comes to an end ? My transfer balance cap is set for life ? My pension phase balance becomes my accumulation balance + TTR ? Cheers, David
Hi Cecilia, I am not aware of a law prohibiting this. However, you might need to be mindful of whether it contravenes early access rules. For example, if you started the TTR in June, then transferred it back to accumulation in July - it may signify your actions were performed for reasons other than what the TTR pension is generally intended for. Again, this is not necessarily illegal either, but just something to be mindful of.
Thanks for your video😊 would it be an advantage for my still full time working husband (65) to draw the TTR pension to cover my part time work salary and have all of my pay ( about 25,000) added straight to my super? I’m 62 btw. Thanks 😊
Hi Deanne, adding your pay straight into super incurs contributions tax of 15%, so this may not be beneficial if 15% is higher than your marginal tax rate. There are other considerations also. There is likely to be better options available to you. Based on your respective ages, I think personal advice could be beneficial. If this is of interest and you don't already have a trusted adviser, feel free to arrange an complimentary Zoom consultation with us by clicking here calendly.com/torowealth/initial-video-call
After 60 and retired, you decided to draw down a pension from your super. Can you still make contributions to your super and would they be tax free? TIA
@@freeasabird5187 Yes, the income would still be tax free. The contributions may incur tax upon entry to the fund, depending on the type of contribution.
Thanks Chris. I've just discovered your very informative videos. Quick question: If I'm receiving a TTR pension tax free does that mean my wage or salary earnings are simply taxed as normal?
What are the normal fees charged for a TTP Also if you are still working and paying into super do those payments then go into your TTP and cancel insurances?
Do you mean super fund fees or advice fees on whether you should or shouldn't start a TTR Pension? TTR Pension accounts cannot receive contributions. All contributions must be made into an accumulation account. It is very important to be mindful of any insurances before you start a TTR and even consider leaving a sufficient balance in your accumulation account, so that the account remains open and insurances remain in place. You should really be seeking professional advice before starting a TTR Pension. Feel free to get in touch with us here if you like www.torowealth.com.au/
After commence a TTR pension account, (in SMSF), can the person continue to contribute $27.5k / year to a separate accumulation account to reduce gross income? I look forward to start TTR once reaching 60 because I can start withdraw 4% each year. The fund makes more than 4% so the balance won't reduce but that 4% is going to nearly match my net salary. Then I can either work less, or stay the same but use those extra for many purposes.
Yes, generally a SMSF can run a TTR pension and accumulation account simultaneously. However, you will need to check the SMSF Trust Deed for rules specific to your fund.
Can you still work full time say 38 hrs a week but start salary sacrifice say 5 per cent instead of reducing hrs as an option to start a TTR at age 60 Does the 12 per cent SG as of July 1 still go to my accumulation fund even if I set up a TTR account . I currently have a SMSF linked to shares
It might be worth getting personal advice first, in order to ensure such a strategy is appropriate. We offer this through our advice firm, Toro Wealth www.torowealth.com.au Otherwise, yes, you can contact your super fund and ask the process involved. Just be mindful of the implications.
The pension transfer cap is $1.9m this year. If one transfers $1.9m into the TTR at 60 and 7 years later at 67, the transfer cap had moved to $2.3m. Would one be able to transfer another $400k into the normal pension fund together with the remaining fund that was in the TTR?
No. If you max out your limit you can no longer put more in. If you have put in less, it s percentage based on how much extra you can put into your TCB if it goes up
is there a video on tax on super lumpsum withdrawls > 60 yrs of age? clarification? please. thankyou, and how much can you earn to supplement ? tax implications?
Hi Chris, I have a SMSF and I'm 60 yrs old and planning to start my TTR this year .My question is if I start TTR this year? And fully stop working early 2025 and withdraw all my super money, is it possible?
I'm 59 and considering a ttp. I have 2 industry super fund accounts. The first contains before tax contributions and the second contains only after tax contributions. If I go ttp, can I draw down only on the first account to minimize beneficiary tax in the future and leave the second in accumulation until reaching 65. Also, my wife is 55 with similar accounts. Can she ttp the after tax only fund and pay no tax due to the tax free contributions it contains.
Good information, thank you. One question - if you transfer a portion of your funds to TTR and your TTR starts to run out of money before age 65, can you transfer more from the accumulation fund?
Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.superguy.com.au/super-tips/
With TTR and Super access both available at 60 (subject to condition of release) I don't think TTR is worth the bother now. Meet a condition of release at 60, start a pension, get the tax free benefits and then go back to work.
So if you're over 60, is the TTR pension tax free irrespective of whether the components are taxable or tax free?
When converting to a TTR pension, are the assets (property/shares/cash) that were held in the accumulation liable for CGT or Stamp duty etc?
Such helpful advice thank you so much.
Question I am now 60 full time employment, happy to keep working full time for a few years, but can I start a TTR pension now and keep working full time and use the pension payments from the TTR to pay down my home mortgage?
Apart from having to reach preservation age, what other requirements are need to access TTR? Mainly, Do i need to go part time or can I remain full time whilst accessing TTR? Thanks
You can remain full-time. There are generally no other requirements. Feel free to get in touch with us here www.torowealth.com.au/ if you would like personal advice in relation to transitioning into retirement
Hi Chris.....Can you contribute some of the unused income from the yearly TTR and re-contribute it back to your standard accumalation super and is there any tax applied if it is seen as a personal deposit
TTR is a great option if your employer agrees to it , in my situation my employer denied my request.
Your employer doesn't have to agree to salary sacrifice and you are free to draw a pension (obviously subject to the rules) so you can follow this strategy to boost super of disposable income. You may be referring to your employer not agreeing to reduced hours which of course they do have to agree to.
Thank you for your Contribution, great video. I'm 59 yrs old and currently on workers compensation and still getting low income from the insurance company. Can I apply to TTR small amount lump sum payment.?
A TTR pension allows you to receive pension payments of between 4% and 10% of your account balance each financial year - but this can usually be received as a one-off payment per year. Just be mindful of tax on withdrawals under age 60. Also, make sure you understand the risks of starting a TTR pension. Seek professional advice first. If you do not already have a trusted adviser, feel free to get in touch with us here www.torowealth.com.au
If we have an investment property within our SMSF worth 750 K can the value of this property go into the TTR pension. I am 60 but my wife is 48. Thanks, Alan
Hi Chris, really useful. If I start a TTR at aged 60, and continue working and contributing to the accumulation fund (adding SG + concessional contributions [claiming a tax deduction for this] + ECC [upto $120,000 from next year ?] - is this correct ? Then at age 65 my transfer balance cap is set, because my TTR comes to an end ? My transfer balance cap is set for life ? My pension phase balance becomes my accumulation balance + TTR ?
Cheers, David
If you have started your TTR less than a month before the end of the financial year, can you access 10% of the amount transferred?
Hi Cecilia, I am not aware of a law prohibiting this. However, you might need to be mindful of whether it contravenes early access rules. For example, if you started the TTR in June, then transferred it back to accumulation in July - it may signify your actions were performed for reasons other than what the TTR pension is generally intended for. Again, this is not necessarily illegal either, but just something to be mindful of.
Thanks for your video😊 would it be an advantage for my still full time working husband (65) to draw the TTR pension to cover my part time work salary and have all of my pay ( about 25,000) added straight to my super? I’m 62 btw. Thanks 😊
Hi Deanne, adding your pay straight into super incurs contributions tax of 15%, so this may not be beneficial if 15% is higher than your marginal tax rate. There are other considerations also. There is likely to be better options available to you. Based on your respective ages, I think personal advice could be beneficial. If this is of interest and you don't already have a trusted adviser, feel free to arrange an complimentary Zoom consultation with us by clicking here calendly.com/torowealth/initial-video-call
The best TTR is where you can reduce your hours without needing to touch your super until you fully retire.
I can understand your reasoning behind saying this, but there are actually several financial benefits to commencing a TTR pension prior to retirement.
After 60 and retired, you decided to draw down a pension from your super. Can you still make contributions to your super and would they be tax free? TIA
@@SuperGuyAu Could you elaborate on those benefits? Thanks.
@@w0mblemania Sure, here is an article hat explains them superguy.com.au/transition-to-retirement/transition-to-retirement-pension-over-60/
@@freeasabird5187 Yes, the income would still be tax free. The contributions may incur tax upon entry to the fund, depending on the type of contribution.
Thanks Chris. I've just discovered your very informative videos. Quick question: If I'm receiving a TTR pension tax free does that mean my wage or salary earnings are simply taxed as normal?
Glad you like the vids! Yes, that's correct.
@@SuperGuyAu so if I salary sacrifice into super the same amount as I'm taking out as a ttr that means I pay less tax, right?
What are the normal fees charged for a TTP Also if you are still working and paying into super do those payments then go into your TTP and cancel insurances?
Do you mean super fund fees or advice fees on whether you should or shouldn't start a TTR Pension? TTR Pension accounts cannot receive contributions. All contributions must be made into an accumulation account. It is very important to be mindful of any insurances before you start a TTR and even consider leaving a sufficient balance in your accumulation account, so that the account remains open and insurances remain in place. You should really be seeking professional advice before starting a TTR Pension. Feel free to get in touch with us here if you like www.torowealth.com.au/
So does that mean you don't actually pay any tax if you are receiving a tax fee component and then you get an offset against the taxable component?
It depends on your other forms and amounts of taxable income and the level of taxable component pension income received.
After commence a TTR pension account, (in SMSF), can the person continue to contribute $27.5k / year to a separate accumulation account to reduce gross income?
I look forward to start TTR once reaching 60 because I can start withdraw 4% each year. The fund makes more than 4% so the balance won't reduce but that 4% is going to nearly match my net salary. Then I can either work less, or stay the same but use those extra for many purposes.
Yes, generally a SMSF can run a TTR pension and accumulation account simultaneously. However, you will need to check the SMSF Trust Deed for rules specific to your fund.
Can you still work full time say 38 hrs a week but start salary sacrifice say 5 per cent instead of reducing hrs as an option to start a TTR at age 60
Does the 12 per cent SG as of July 1 still go to my accumulation fund even if I set up a TTR account . I currently have a SMSF linked to shares
Yes to all. But check with your SMSF accountant/administrator.
do i contact my super people to set up the account?
It might be worth getting personal advice first, in order to ensure such a strategy is appropriate. We offer this through our advice firm, Toro Wealth www.torowealth.com.au Otherwise, yes, you can contact your super fund and ask the process involved. Just be mindful of the implications.
The pension transfer cap is $1.9m this year. If one transfers $1.9m into the TTR at 60 and 7 years later at 67, the transfer cap had moved to $2.3m. Would one be able to transfer another $400k into the normal pension fund together with the remaining fund that was in the TTR?
No. If you max out your limit you can no longer put more in. If you have put in less, it s percentage based on how much extra you can put into your TCB if it goes up
Sooo simple - thank you government
!!
is there a video on tax on super lumpsum withdrawls > 60 yrs of age? clarification? please. thankyou, and how much can you earn to supplement ? tax implications?
This article explains tax on lump sum super withdrawals superguy.com.au/superannuation/super-lump-sum-tax-withdrawals/
Thank you.
You're welcome!
Hi, TTR ? Wife is 60. Super balance $310k $60 k income @ I’m 59 super balance $350k $50k income
Hi Chris, I have a SMSF and I'm 60 yrs old and planning to start my TTR this year .My question is if I start TTR this year? And fully stop working early 2025 and withdraw all my super money, is it possible?
Great, thanks heaps Chris.
My pleasure!
I'm 59 and considering a ttp. I have 2 industry super fund accounts. The first contains before tax contributions and the second contains only after tax contributions. If I go ttp, can I draw down only on the first account to minimize beneficiary tax in the future and leave the second in accumulation until reaching 65. Also, my wife is 55 with similar accounts. Can she ttp the after tax only fund and pay no tax due to the tax free contributions it contains.
Good information, thank you. One question - if you transfer a portion of your funds to TTR and your TTR starts to run out of money before age 65, can you transfer more from the accumulation fund?
Can you take the 10% from a TTR as a lump sum each year?