Investment and superannuation platform Hub24 has partnered with life insurer TAL to release a lifetime super solution that will provide access to concessional Centrelink treatment when used to purchase a lifetime pension account.
The new lifetime super account, which is an accumulation account within Hub24 Super, meets the requirements of an innovative retirement income stream and functions in a similar way to a regular accumulation account, but also offers a concessional deemed purchase price that can be used to determine age pension eligibility and lead to increased government entitlements.
“For individuals with a standard accumulation account, Centrelink assesses their assets test based on the account balance. In contrast, those that use a lifetime super account to purchase a lifetime pension have their asset value determined using the ‘deemed value’, which disregards investment returns,” the Hub24 website stated.
“This method generally results in a lower assessed asset value, leading to a more favourable outcome in the assets test for government entitlements.
“At retirement, clients can choose how to structure their retirement income. This may include allocating part of their super to a lifetime pension account and retaining flexible access to capital through an account-based pension account as well.”
The firm added recent TAL research found more than half of pre‑retirees valued income‑for‑life features and nearly nine in 10 were open to a lifetime income product if offered, demonstrating the demand for certainty and choice.
Hub24 chief operating officer Craig Lawrenson added: “Choice and flexibility are fundamental to a trusted superannuation system, enabling advisers to deliver more personalised advice, strengthening engagement and outcomes, and driving ongoing innovation across the industry.”
Lawrenson noted recent federal budget announcements highlighted the role financial advice could play in helping Australians deal with change and complexity and delivering advice tailored to their individual circumstances.
“Advisers need access to solutions that enhance productivity and simplify the delivery of complex advice. An example is Hub24’s innovative multi‑step transitions capability that enables advisers to execute complex strategies simultaneously, from account establishments to recontributions,” he said.
The new super account will be complemented with the launch of a lifetime pension account next year, with the two products expanding the range of retail superannuation and SMSF solutions available, including the Allianz Guaranteed Income for Life lifetime income solution and Challenger annuities.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason