MyNorth Lifetime gains traction with advisers

Over half of Australian advisers are now authorised to write MyNorth Lifetime under their approved product lists since its launch in October last year.  

The retirement solution by AMP is designed to help Australians make the most of their retirement savings by offering retirees high levels of lifetime income. 

Lifetime accounts have been written under 32 licensees and the product sees some 20 new advisers per month, according to AMP.

“MyNorth Lifetime continues to deliver on its promise as a market leader for retirement income security and capital preservation for thousands of Australians,” said Edwina Maloney, AMP’s director of platforms.

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“As a highly innovative retirement solution, MyNorth Lifetime is the only pension account on the market which allows members to continue making contributions in a tax-free earnings environment while deferring income.”

For Australians taking advantage of MyNorth Lifetime in their portfolios, AMP data shows their retirement income has increased by approximately 50 per cent on average.  

This has been attributed to a combination of MyNorth Lifetime paying substantially higher income rates than typical account-based pension drawing rates; members drawing higher incomes from their remaining account-based pensions, compared to drawing minimum levels previously; and Lifetime members enjoying greater eligibility for the age pension due to the discounted asset test treatment.

“In a short amount of time, it has grown to be on the majority of the major APLs and is really popular with our aligned advice network because of the comfort and security that it provides for retirees, pre-retirees, and those transitioning into retirement,” Maloney added.

According to Ben Hillier, AMP’s general manager for retirement solutions, the product recognises retirement as being an area of significant importance to the wellbeing of all Australians with unique financial challenges and needs.

“With thousands of advisers now able to write MyNorth Lifetime under their APLs, we’re proud that more Australians can get access to high rates of lifetime income married with the full investment choice from North’s Super and Pension Menus,” he said.

“We will continue to invest in MyNorth Lifetime, working closely with our advisers to evolve the offering with their feedback and expand the range in the coming months.”

The product is also the only accumulation solution on the market that allows members to accumulate concessions to increase their age pension eligibility in retirement. 

This proves to be an attractive option for advisers, AMP said, with some 65 per cent of Lifetime accounts being opened by pre-retirees.