Annuities available on CFS platforms
Colonial First State has further signalled a move into the annuities space, by making Challenger's annuities available via its FirstWrap and FirstChoice platforms.
It came after the Commonwealth Bank's announcement in June that it would be offering Comminsure-backed annuity products through the platforms.
The announcement came as research by Investment Trends recently showed 60 per cent of advisers were using or planned to use annuities in 2015, more than double the rate in 2012.
Colonial First State executive general manager, Linda Elkins, said the availability of guaranteed income stream solutions like annuities would facilitate advisers to arrange a regular income for retirees.
"Colonial First State has more retiree customers, looks after more retirement savings, and pays more in private pension payments than anyone else," Elkins said.
"Offering annuities via our platforms make it easier for retirees to lock in guaranteed cash flow irrespective of how long they live."\
The July 2015 Marketing Pulse omnibus survey of financial advisers showed 65 per cent of advisers expected they would increase the use of annuities if they were available on major platforms.
AUTHOR
Malavika Santhebennur
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