POWERED BY MOMENTUM MEDIA
Platforms aid rise of annuities: Challenger
Ensuring annuities are available through platforms is driving growing use of the guaranteed income products, Challenger chief executive, Brian Benari believes.
In a statement to the Australian Securities Exchange (ASX), the fund manager revealed annuity sales jumped 29 per cent in the March quarter, compared to the corresponding period, to $575 million, with term annuities up 22 per cent, and lifetime annuities up 63 per cent.
The firm noted that more than 50 per cent of platform sales in the quarter came from advisers who had not traditionally sold Challenger annuities.
"The key stand out is the step up in lifetime annuity sales which accounted for 23 per cent of sales in the quarter and benefitted from our move to embed annuities on platforms," Benari said.
"This resulted in flows through Colonial First State, being up more than 100 per cent on the same period last year.
"During the quarter there was significant progress on the regulatory reform agenda.
Treasury is currently setting the objective of superannuation. This is critical to prepare Australia for one of the great social and economic issues of our time — the ageing of Australia's population. Making it clear that superannuation is to provide income in retirement provides government and industry the framework to tackle this challenge.
"It's also the first logical step in an expected series of reforms, including a review of retirement income streams regulation and the development of comprehensive income products for retirement."
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
