Challenger launches market-linked annuity

5 October 2021
| By Jassmyn |
image
image
expand image

Challenger Life has launched a market-linked lifetime annuity that aims to overcome longevity risk while maintaining exposure to investment markets.

The option was available in its Liquid Lifetime annuity and provided superannuation funds with access to a market-linked capability and the flexibility to integrate it as a bespoke solution within retirement income strategies.

Challenger Life chief executive, Angela Murphy, said the annuity was launched as the government moved to legislate the Retirement Income Covenant.

“Challenger consulted with a wide range of advisers in designing the market-linked lifetime annuity, with more than 80% of advisers saying they would seriously consider the option to complement their clients’ other sources of income,” she said.

“Lifetime annuities are not an all or nothing proposition. They can be part of a retirement portfolio and complement other sources of income in retirement. Annuities make your retirement income last a lifetime and enable you to spend confidently. They provide certainty and control over estate planning outcomes and most importantly help to overcome the worry that you might become wholly dependent on the Age Pension.

“Combining the benefit of a regular income and exposure to investment markets, with the flexibility to review annually, is a compelling option that will drive strong interest from advisers and their clients. The combination will help overcome the anxiety many retirees have about outliving their retirement savings.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The central bank has served up a disappointment for punters on Melbourne Cup Day....

20 minutes 28 seconds ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

5 hours ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

23 hours ago