Edwina Maloney
AMP has announced the launch of a market-first retirement solution, MyNorth Lifetime, an innovative new option for retirees that provides the peace of mind and certainty of higher income for life.
MyNorth Lifetime, available through the MyNorth Wrap platform, delivers on a key strategic priority for AMP to help more Australians achieve a better-quality life throughout retirement.
The unique design of MyNorth Lifetime provides higher rates of income to retirees by combining the flexibility of an account-based pension with the lifetime cashflow features of annuities.
Customers are paid an income for life, which incorporates the certainty of an annual bonus underwritten by TAL, one of Australia’s leading life insurers.
Customers and their financial advisers have complete control over investment choice and strategy, with access to North’s extensive investment menu. This ensures advisers can support their customer’s specific investment goals and retirement objectives, and make changes over time as circumstances change. The account provides an income for life because the guaranteed annual bonus rate ensures the balance will never be depleted.
MyNorth Lifetime includes options for retirees, pre-retirees and those transitioning into retirement:
- The MyNorth Lifetime Income account: Provides a retirement income stream for life, for customers (and their spouses where selected).
- The MyNorth Lifetime Super account: An accumulation account with no capital restrictions that lets customers plan and save for retirement while locking in asset test benefits.
- The MyNorth Deferred Lifetime Income account: A tax-free accumulation account for customers who have satisfied a condition of capital release but do not wish to commence drawing down an income.
Edwina Maloney, AMP’s Director of Platforms, said: “As an industry we’ve needed to do better to help Australians take full advantage of their hard-earned retirement savings, with too many fearful[1] their savings won’t last long enough.
“The MyNorth Lifetime Income account addresses this critical issue and is a game-changer for retirees and advisers.
“Developed by North’s team of retirement experts in close consultation with advisers, it’s a first of its kind solution which provides higher rates of income, for life.
“This gives greater peace of mind in retirement and the confidence to spend savings and live life to the full.
“Working closely with advisers to provide more retirees with this confidence is a priority, and we’ll continue to work with advisers as we invest in North, including its investment menu and functionality.”
Ben Hillier, AMP General Manager Retirement solutions, said: “We’re excited to bring MyNorth Lifetime to market – a unique retirement solution that provides income for life yet retains unmatched levels of flexibility to tailor to individual circumstances.
“Importantly, MyNorth Lifetime has been designed to work seamlessly with other income sources like an account-based pension and the age pension. For many retirees, the 40 per cent plus discount on the Centrelink assets test will significantly improve their eligibility for the age pension.
“The different options also allow advisers and their customers to begin planning for retirement earlier, draw higher rates of retirement income and take advantage of superior tax and Centrelink strategies.
“Unlike alternative lifetime income products, this isn’t a set-and-forget solution that can’t be adjusted during a retirement, that will often last decades.
“We are also delighted to be partnering with leading Australian life insurer TAL, to provide our customers with confidence in their retirement through annual bonus payments which ensure income is payable for life.”
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