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.”