I’m 61 with no plan to retire soon. Should I start tapping into my super?

March 11, 2026 — 5:01am

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I am a 61-year-old widow. I am self-employed and earn on average $190,000 a year after expenses, with no plans to retire at this stage. I currently have $860,000 in super and contribute the maximum $30,000 a year as a tax-deductible contribution. I own my home outright and also have a negatively geared investment property worth about $2.4 million, with a mortgage of $950,000. Apart from this, I have no other investments and no debts.

Since turning 60, I have been told I can convert my super to a transition-to-retirement fund. I understand there can be tax advantages, as earnings may be tax-free. However, I also understand you must withdraw money from a TTR fund, which can then be recontributed to an accumulation fund if you choose. I have no need for additional income, as I live comfortably on my earnings.

Is there any overriding benefit in converting to a transition-to-retirement fund, or should I simply continue making the maximum concessional contribution each year to my accumulation fund, as I have been doing?

There are still plenty of misconceptions about transition-to-retirement pensions. They were introduced when the government was trying to encourage older Australians to stay in the workforce.

The idea was simple: if you reduced your working hours, and therefore your take-home pay, you could start a TTR pension and draw a limited income........

© The Sydney Morning Herald