Introducing the MyNorth 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 Lifetime Income account combines the flexibility of an account-based pension that provides a high-rate market-linked income stream with the certainty of a lifetime cashflow that never runs out, like an annuity.
The Lifetime Income account is a market-first retirement income solution that puts you in control of important portfolio decisions like investment strategy, asset allocation and security selection.
Benefits for you
More flexibility to manage your clients' goals in retirement.
Freedom to invest from MyNorth's extensive Super and Pension menu.
Support their ongoing retirement needs.
Benefits for your clients
Higher2 rates of income for life of account holder, with no minimum.
40% discount on the Centrelink assets test.
Optional Death or Exit Benefit.
Couples Option allows for a nominated reversionary.
Guaranteed by a top insurer.
Become a MyNorth Lifetime Master
How the MyNorth Lifetime Income account works
We don’t know exactly how long any one of us will live, but we do know that Australian retirees are not spending their retirement savings. So, we’ve designed a solution that insures against the risk of anyone running out of money before they die.
The Lifetime Income account works a bit like life insurance in reverse.
Instead of paying annual premiums that rise each year in exchange for a lump sum paid to the estate after death, clients receive an annual bonus3 that rises the longer they live. In return, the premium is paid from their account when they die or exit the platform.
This gives your clients the confidence to draw higher rates of income than are generally drawn from an account-based pension.
And the Lifetime Income account puts you squarely in the driver’s seat as their adviser. You design, monitor and develop their solution over time to maintain a cashflow that lasts a lifetime.
Case study
Martin and Priyanka retire at age 67 with a combined $900,000 in super.
They decide they want the certainty of receiving income for life, as well as the flexibility of being able to withdraw extra money if needed.
They transfer $450,000 to a Lifetime Income account, and $450,000 to an account-based pension.
Martin and Priyanka set an income goal of $86,500 per annum. This results in their account-based pension being exhausted by the time they turn 90. This would have concerned Martin and Priyanka as the Australian lifetables5 indicate that 1 in 5 couples age 67 will have at least one surviving spouse who will make it to age 98.
However, the Lifetime Income account will continue to provide them with an ongoing income above the 2022 ASFA comfortable living standards6.
If Martin and Priyanka had put all their money into an account-based pension, their account would have also run out at age 90 and they would have relied solely on the Age Pension for the remainder of their life.
Income
100% Account Based Pension
Martin and Priyanka’s Strategy
Assumptions
- All projections assume 2.3% CPI rate of inflation, 3% wage inflation (AWOTE), and 6% earnings pa
- All projections are in today’s dollars with income indexed to CPI
- 20 September 2022 age pension rates, deeming rates and thresholds applied (subject to inflation)
- ASFA figures are as of 20 September 2022 and are those for a couple
- Lifetime Account annually pays a $91 account fee + a 10bp lifetime fee
- Account Based Pension annually pays a $91 account fee
- Members are homeowners with $50,000 in other assets and $0 in other income during retirement
Learn about our other two solutions
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What you need to know
The information on this page has been provided by NMMT Limited ABN 42 058 835 573, AFSL 234653 (NMMT) and is general in nature. It’s for professional adviser use only and must not be distributed or made available to retail clients. Any taxation and Centrelink information is not intended to be personal advice and should not be relied on as such. A person should consider whether this information is appropriate for them before making any decisions. It’s important a person considers their circumstances and reads the relevant product disclosure statement and target market determination, available from northonline.com.au or by contacting the North Service Centre on 1800 667 841, before deciding what’s right for them.
You can read the Financial Services Guide online for more information, including the fees and benefits that companies related to NMMT, N.M.
Superannuation Pty Limited ABN 31 008 428 322, AFSL 234654 (N.M. Super) and their representatives may receive in relation to products and services provided. You can also ask us for a hard copy. MyNorth is a trademark registered to NMMT. MyNorth Lifetime is a part of MyNorth Super and Pension and is issued by N. M. Superannuation Proprietary Limited (ABN 31 008 428 322, AFSL 234654 (NM Super) as trustee of the Wealth Personal Superannuation and Pension Fund (the Fund) ABN 92 381 911 598
* Deferred Lifetime Investment Linked Winner, and Innovation Winner, Plan for Life Excellence Awards, 2022, 2023, Chant West's Best Fund: Innovation award Winner, 2023, Pension Fund Design and Reform Award winner at World Pension Summit 2023.
2 Compared to typical account based pension income rates
3 In return your clients will leave some of their balance when they exit or die