✓ 55-year-old female
✓ $200k initial super balance
✓ MyNorth Lifetime Super account
✓ $447,076 account balance but a $355,568 purchase amount
✓ 40% discount on the purchase amount potentially resulting in more Age Pension
Amy is 55. On 1 November 2022, she opens a MyNorth Lifetime Super account, and begins making contributions as shown in the table.
This account operates almost identically to a super account until ‘assessment day’, which is when a client reaches a full condition of release, such as retirement or turning 65.
This means that before the assessment day any money held in this account won’t count towards Centrelink’s asset or income tests. Following assessment day, the actual account balance will not be considered by Centrelink for the asset test. Instead, they’ll take a figure called the ‘purchase amount’, and only assess 60% of this value until age 84, and 30% thereafter.
In a MyNorth Lifetime Super account, the purchase amount is calculated separately to the account balance (and transfer balance) and is equal to each contribution made to the account (including the opening balance), compounded annually by the upper deeming rate and added together.
In the example below, if Amy makes 6% investment returns each year her account balance at 1 November 2032 would be $447,076, and in a standard account-based pension this full amount would count towards her Centrelink asset test. But, as outlined in the table, her MyNorth Lifetime Super account’s purchase amount at this time will be $355,568. Centrelink will then only assess 60% of this value from age 67 to age 84, and 30% thereafter – potentially unlocking substantial increases in age pension eligibility.
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Important information
The information on this page has been provided by NMMT Limited ABN 42 058 835 573, AFSL 234653 (NMMT). It contains general advice only, does not take account of your client’s personal objectives, financial situation or needs, and a client should consider whether this information is appropriate for them before making any decisions. It’s important your client consider their circumstances and read the relevant product disclosure statement (PDS), investor directed portfolio guide (IDPS Guide) and target market determination (TMD), available from northonline.com.au or by contacting the North Service Centre on 1800 667 841, before deciding what’s right for them.
MyNorth Investment and North Investment are operated by NMMT. MyNorth Investment Guarantee is issued by National Mutual Funds Management Limited ABN 32 006 787 720, AFSL 234652 (NMFM). MyNorth Super and Pension (including MyNorth Lifetime), MyNorth Super and Pension Guarantee and North Super and Pension are 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. NMMT issues the interests in and is the responsible entity for MyNorth Managed Portfolios. All managed portfolios may not be available across all products on the North platform. All of the products above are referred to collectively as MyNorth Products. The information on this page is provided only for the use of advisers, it is not intended for clients. This page provides a brief overview of some of the benefits of investing in MyNorth Products. The adviser remains responsible for any advice/services they provide to clients including making their own inquiries and ensuring that the advice/services are appropriate and in accordance with all legal requirements.
You can read the Financial Services Guide online for more information, including the fees and benefits that companies related to NMMT, N.M. Superannuation Proprietary Limited ABN 31 008 428 322, AFSL 234654 (N.M. Super) and their representatives may receive in relation to products and services provided.
North and MyNorth are trademarks registered to NMMT.
All information on this website is subject to change without notice.
1 Deferred Lifetime Investment Linked Winner, and Innovation Winner, Plan for Life Excellence Awards, 2022, Pension Fund Design and Reform Award winner at World Pension Summit 2023.