MyNorth Deferred Lifetime Income account
Maximise retirement benefits with greater flexibility and control.
Introducing the MyNorth Deferred Lifetime Income account
One of an award-winning1 suite of three solutions that financial advisers can use to help clients retire comfortably, confident they’ll have a lifetime of retirement income.
A MyNorth Deferred Lifetime Income account can be used in accumulation and may provide enhanced tax, transfer balance and Centrelink benefits; and provides greater opportunities for long-term client engagement with significantly better retirement outcomes2.
How the MyNorth Deferred Lifetime Income account works
A MyNorth Deferred Lifetime Income account can be opened from age 60, once a member meets a full condition of release. It’s the first pension account in Australia that accepts contributions.
You can set up the account using any investment options from North’s extensive Pension and Super menu. You can defer the income stream up to age 100 and along the way your client can access withdrawals up to the maximum commutation rate.
When your client is ready to commence an income, they can easily transition into a MyNorth Lifetime Income account.
Jinoo’s pre-retirement
By the age of 70, Jinoo’s standard super balance has compounded annually by the investment earnings and contributions he has made and is worth $316,601, of which the full value will be assessed by Centrelink for the Age Pension asset test.
At this time, his Deferred Lifetime Income balance has also compounded annually by the same investment earnings and contributions and is worth $343,814; approximately $27,000 more than his standard super balance because he does not pay investment earnings tax and receives a guaranteed annual bonus each year in his Deferred Lifetime Income account.
Additionally, Deferred Lifetime Income accounts accrue a purchase amount equal to all contributions less commutations (not including investment earnings). A further 40% discount is applied to the purchase amount, which is then assessed by Centrelink for the age pension asset test. As such, only $115,615 (34% of his actual account balance) is assessable from Jinoo’s Deferred Lifetime Income account at age 70.
Jinoo’s retirement
Jinoo retires at age 70, is a homeowner with an additional $100,000 in other assets. He wants to receive $67,000 income in today’s dollar’s indexed to CPI. He rolls his Deferred Lifetime Income account into a Lifetime Income account and rolls his standard super into an Account Based Pension.
Assumptions
- All projections assume 2.5% CPI rate of inflation, and 3% wage inflation (AWOTE)
- All income, capital and age pension projections are in today’s dollar's indexed to CPI
- Investment Earnings Tax is 15% (of a standard super account)
- Concessional Contributions Tax is 15%
- All concessional contributions are within concessional cap
- 20 March 2026 age pension rates, deeming rates and thresholds applied (subject to inflation)
- Deferred Lifetime Income and Lifetime Income accounts annually pay a $180 account fee + a 0.10% Lifetime fee (capped at $500 pa) Standard Super and Account Based Pensions annually pay a $180 account fee
- All investment earnings are assumed to be net of fees
Jinoo's retirement income
Because of Jinoo’s reduced Centrelink assets test, he immediately receives over $15,000 in Age Pension in his first year of retirement, where he would otherwise receive $0 in the absence of MyNorth Lifetime.
Jinoo is also able to sustain his $67,000 income goal for an additional 7 years due to the increased Age Pension and MyNorth Lifetime income he receives each year. When his Account Based Pension finally depletes at age 97, his MyNorth Lifetime Income account continues to pay income for the remainder of his life, preventing him from ever relying on the Age Pension alone.
100% Standard Super and Account Based Pension
Jinoo's Strategy
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