AMP has launched MyNorth Lifetime, a retirement income product that can be opened before retirement.
Available through the MyNorth wrap platform, it would provide a higher rate of income for retirees by combining the flexibility of an account-based pension with lifetime cashflow feature of annuities.
Customers were paid a lifetime income which incorporated the certainty of an annual bonus underwritten by life insurer TAL which AMP said would ensure the balance was never depleted.
Customers and their advisers would have complete control over investment choice and strategy which would allow advisers to support their clients’ specific investment goals and retirement objectives.
The options were:
- 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 director of platforms, said: “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: ”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% 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.”
