Help clients reimagine retirement with flexible lifetime products

MyNorth Lifetime is a new range of three solutions that expand the options available to your clients on the North platform.

MyNorth Lifetime products are made to be flexible. You can use them to help your clients achieve better tax effectiveness, access Age Pension and have income certainty in retirement. So what could this flexibility mean for your clients?
 

1. Lifetime Super account 

The Lifetime Super account operates like a regular super product for your clients in the accumulation phase. It’s a better way to increase your client’s eligibility for the Age Pension in future.

Key benefits  

• Potential Age Pension benefits because the asset test is determined from the purchase amount. We then discount that purchase amount by 40%. This leads to a substantial discount on the asset test to support future Age Pension eligibility.
• Operates like a regular super account where your client makes contributions to accumulate for future retirement income, subject to standard caps.
• No minimum age means that accounts can be opened and held at any age up to age 65 or when a condition of release is met, whatever comes first.
• Full investment choice from North’s extensive Super and Pension menu, including managed portfolios.
• No lock means that funds can be transferred to another product without penalty, and the full balance is paid at death or exit.

2. Lifetime Income account 

Designed for retirees aged over 60, this drawdown account provides very high default rates of income – about 50% higher than the account-based pension minimum.

Because Allocated Pension minimums do not apply, there’s no minimum drawdown requirement*, the Lifetime Income account can be used in conjunction with an account-based pension to adjust the level of income.

Key benefits   

• A guaranteed annual bonus provides an insured annual income for the rest of your client’s life, regardless of how investment markets perform. In return, your client pays part of their balance to TAL, our insurer, when they die or exit the account.
• Spouse cover provides the option of income for the life of the spouse as well as the policy holder at a 100% reversion rate. That means income is provided to both spouses, regardless of who lives the longest.
• Full investment choice from North’s extensive Super and Pension menu including managed portfolios.
• Potential Age Pension benefits from the 40% upfront discount on the assets test. This effectively gives your client a 3.1% additional return on investment in the form of the Age Pension. Your client may also be eligible for the Pensioner Concession Card.
• Optional money-back on death or exit benefit gives your client their starting balance less any income paid, subject to legislated maximums and their account balance.

3. Deferred Lifetime Income account 

This hybrid solution combines the benefits of both an accumulation solution and a retirement product.

Another benefit is that a portion of your client’s portfolio can be invested tax free** into a high-growth strategy with no requirement to draw an income. This makes the product suitable for accumulating long-term funds that have been set aside for longevity or aged care planning.

Key benefits       

• Tax-free accumulation** for clients aged over 60 because the product can accept multiple contributions. It doesn’t pay an income, but lump sums can be withdrawn up to the same limits that apply to the Lifetime Income account.
• Full investment choice means your client can invest however they wish from North’s extensive menu, including managed portfolios.
• A guaranteed annual bonus is paid because this is a retirement product. In return, your client pays some of their balance to TAL, our insurer, when they die or exit.
• Age Pension and Transfer Balance benefits as the investment growth within the account isn’t counted in the assets test, or for transfer balance purposes.
• Optional money-back death or exit benefit enables your client to receive their starting balance less the income paid by North, subject to legislated maximums and the account balance.
• Start income whenever it suits your client, as income can be deferred all the way up to age ninety-nine. The income stream can be started by converting to a Lifetime Income account.

* Other drawdown requirements that govern the product are:

1. Default income rates apply each year as per schedule in PDS, which are applied to 1 July account balance and determine the maximum income payable for that financial year. 

2. Account balance may increase or decrease with fluctuating investment returns, which will resultedly impact actual income.

3. Members do not need to withdraw maximum income rates, however at the beginning of each financial year income will revert to the maximum applicable rate and will require nomination to lower amounts.

** Only investments are in a tax-free environment, this does not apply to all components of the account.