AMP’s leading retirement solution, MyNorth Lifetime, has today been recognised globally as the winner of the Pension Fund Design and Reform Award at the World Pension Summit held in The Hague in the Netherlands.
Now in its 14th year, the Excellence and Innovation Awards are an annual celebration of innovation in retirement planning and design, highlighting those that are leading the charge and excelling in terms of their strategy, execution or delivery.
Hosted by Pensions and Investments, the international awards span three categories: investment, plan design and communication, with this year’s theme being ‘Regenerating Sustainable Outcomes’.
Launched in October last year, MyNorth Lifetime is a multi-award winning retirement solution that offers retirees and those transitioning into retirement the highest level of lifetime income in the market.
Combining the flexibility and control of the account-based pension and the income stability of an annuity, MyNorth Lifetime is already proving popular with advisers and their clients due to the comfort and security it provides for those heading into retirement.
Since launching, it has helped lift income rates by around 50% for those members who are using MyNorth Lifetime, delivering a guaranteed cashflow and longevity protection that is decoupled from the investment experience.
Previously, the majority of these members were drawing legislated minimums from their account-based pensions, and now the majority are drawing above the minimums on their balances which remain in account-based pensions.
On average, they are allocating 50% each to the Lifetime account and the account-based pension. The longevity of income is guaranteed for these members, but the level of income is market-linked, resulting in income rates that are substantially higher than traditional annuities.
MyNorth Lifetime received the Best Fund Innovation Of The Year at the Chant West 2023 Super Fund Awards in May and Canstar’s Innovation Excellence Award in April.
It was also awarded two Plan For Life (PFL) awards at their Longevity Cover Awards for 2022.
A market-first solution, MyNorth Lifetime provides complete investment control, income flexibility and account transparency, there is no need to reserve capital or invest conservatively, and more Australians can enjoy a better life in retirement.
AMP Group Executive, Platforms, Edwina Maloney said:
“MyNorth Lifetime is a global pace-setter in retirement income innovation which is improving the quality of life for Australians in their post working years.
“Our members who are taking up MyNorth Lifetime are experiencing greater levels of confidence in their retirement and they are significantly increasing their spending because they’ve overcome the pervasive fear of running out.
“We believe this provides a model for a new generation of flexible, transparent and compelling lifetime income solutions that overcome the drawbacks associated with traditional annuities.”
AMP General Manager, Retirement Solutions, Ben Hillier said:
“We’re really excited to be recognised on the world stage as a global leader for retirement income innovation with MyNorth Lifetime
“Today, over 95% of funds in superannuation income streams are in account-based pensions which offer investment choice and flexibility but provide no explicit guarantees regarding income level, volatility or duration. What that means is all investment and longevity risks are borne by the retirees.
“Managing these risks prompts more than half of retirees to draw only the minimum for their retirement, leading to a lifestyle deficit in retirement. However, the reality is you don’t need to trade-off flexibility, transparency and value in order to receive a lifetime income stream.
“There is a real opportunity to educate more Australians and help ensure we tackle this challenge of underspending so that more people can enjoy their best years in retirement.”
