CFS adds Challenger’s aged care solution
Colonial First State (CFS) has added Challenger's CarePlus to its FirstChoice platform to meet aged care needs.
The solution combined a lifetime annuity with life/risk insurance, providing a regular income for aged care costs and estate planning certainty.
Challenger's chief executive for distribution, research, and marketing, Paul Rogan, said financial advisers faced growing demand to help their clients deal with the complexity and cost of going into aged care.
"This is an emotionally charged issued, particularly for the ‘sandwich generation' — people in their 50s and 60s who now need to manage not only their own retirement planning but, increasingly, the needs of ageing parents as well," Rogan said.
Challenger said according to a National Seniors Australia survey, while only a small percentage of Australians in this generation currently provided financial support for elderly parents, 28 per cent of those with surviving parents were concerned they may need to do so in the future.
Another 45 per cent of over-50s were saving for their own unknown aged care costs.
CFS general manager for product and investments, Peter Chun, said being able to access annuities on the platform made it easier for advisers to implement client retirement strategies which used annuities in conjunction with other products.
"It creates process efficiencies, and allows us to improve the client application process and integrate client reporting," Chun said.
"Having a complete suite of retirement products available on the one platform can offer advisers a seamless and immediate gateway to start the conversation about aged care earlier, allowing their customers a smoother transition once the need arises."
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