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TTR sweet-spot calculator

From age 60 you can salary-sacrifice into super and top your take-home back up from a transition-to-retirement (TTR) pension — shifting income from your marginal rate to 15% tax. Move the sliders to find the sacrifice that saves the most for the same take-home.

60 yrs

TTR is available from your preservation age (60).

65 yrs

You'd run the strategy for about 5 years.

$120,000

Your employer adds 12% super (~$14,400/yr) on top.

$400,000

A TTR pension can pay 4–10% of this a year — a bigger balance lets you replace more take-home.

How the swap works

Salary-sacrifice into super (taxed at 15%, not your ~32% marginal rate), then draw the same amount you gave up from a TTR pension — tax-free from 60. Your take-home is unchanged; the gap between your marginal rate and 15% becomes extra super.

Your TTR sweet spot
$18,100salary sacrifice / year
Saves $3,077/yr in tax for the same take-home — about $15,385 over 5 years to 65.

It's capped by the $32,500 concessional cap (your $14,400 SG + $18,100 sacrifice).

Concessional cap remaining$18,100
Employer SG $14,400 Salary sacrifice $0of $32,500 cap
$0

Take-home is fully replaced by the tax-free TTR pension at this level.

Tax saved (extra to super)
32% marginal − 15% contributions tax
$0/yr
Take-home pay
unchanged
$91,080/yr
TTR pension drawn (tax-free)
limit $40,000/yr (10% of super)
$0/yr
Into super after 15% tax
$0/yr
Net added to super
contribution in − pension drawn out
$0/yr

General information only, a 2026-vintage estimate in today's dollars — not personal financial advice. Since 2017 a TTR pension's earnings are taxed at 15% (like accumulation), so the benefit is the contributions-tax arbitrage shown here, not an earnings-tax break. Bring it into your full plan with the Transition-to-Retirement lever.

How the sweet spot works

The benefit is a tax arbitrage: each dollar you salary-sacrifice is taxed at 15% going into super instead of your marginal rate plus the 2% Medicare levy. You replace the take-home you gave up by drawing from a TTR pension, which is tax-free from 60 — so your pay packet is unchanged and the difference between your marginal rate and 15% lands in your super.

Two limits set the sweet spot. Your total concessional contributions (employer SG plus salary sacrifice) can't exceed the concessional cap, and a TTR pension can pay at most 10% of its balance a year — so a smaller super balance limits how much take-home you can replace. The sweet spot is the largest sacrifice that fits both.

Since 1 July 2017 a TTR pension's earnings are taxed at 15% (the same as accumulation), so the old earnings-tax break is gone — the contributions arbitrage above is where the value now sits. High earners over $250,000 also pay Division 293, an extra 15% that halves the arbitrage.

See it in your whole retirement plan

The free planner runs a TTR strategy inside your full projection — the extra super, the tax saved, and how it plays out year by year to retirement.

Open the planner