Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Challenger launches floating rate annuity

challenger/RBA/annuity/Angela-Murphy/

24 August 2020
| By Chris Dastoor |
image
image image
expand image

Challenger is launching a guaranteed floating rate lifetime annuity, with payments linked to the Reserve Bank of Australia (RBA) cash rate.

The new annuity would provide investors with guaranteed payments that moved with the RBA cash rate, allowing them to not miss out when the rate rises again.

Angela Murphy, chief executive of distribution, product and marketing at Challenger, said the option maintained substantial estate and withdrawal benefits, and could improve Age Pension eligibility and outcomes.

“This is a smart new defensive solution for providing income certainty, particularly given current global market volatility and can be combined with other products, such as account-based pensions to build comprehensive retirement solutions,” Murphy said.

“A lifetime annuity is designed to complement other sources of retirement income like an account based pension or the Age Pension, and can be used to fund everyday living costs, providing peace of mind that no matter what investment markets do, an income stream will be paid.”

RBA cash-linked payments for a 65-year-old male per $100,000 invested

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 week 5 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

2 weeks 5 days ago

So we are now underwriting criminal scams?...

6 months 3 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

2 weeks ago

A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time th...

3 weeks 6 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

2 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3