Challenger launches retirement income assessment

18 May 2020

Challenger has launched a new tool, Retire with Confidence, to help retirees and pre-retirees to better understand how long their retirement income might last and the amount of Age Pension they would be eligible for.

The tool aimed to support retirees to have informed discussions with advisers by helping to educate them on their retirement options.

It would also show how including different types of investments and sources of income, including a lifetime income stream, could improve financial outcomes.

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Challenger used behaviour research in developing the tool to help identify the misconceptions retirees had about retirement income and barriers to talking to a financial adviser.

Angela Murphy, Challenger chief executive for distribution, product and marketing, said the firm hoped the tool would help better prepare retirees to discuss their options when talking to financial planners about retirement.

“Planning for retirement is complex, there are a range of barriers that inhibit retirees when it comes to developing a comprehensive retirement income plan,” Murphy said.

“The Retire with Confidence tool aims to overcome those barriers by using a series of ‘reality checks’ that help to explain different retirement income options that may be available to retirees, encouraging them to consider their current financial plan and take action to talk to a financial adviser.”

Although the tool had been developed before the COVID-19 pandemic, the company said the release was timely as the pandemic had put retirement savings at risk.

“Retirees without a guaranteed source of income may now be facing increasing uncertainty in an unchartered landscape,” Murphy said.

“Many older Australians might be questioning the confidence they previously had about their financial situation and reviewing their retirement income plan to understand how long their savings and investments might last.

“We wanted to create a tool for retirees that brought these elements together in a simple way to help build confidence and understanding about income options in retirement.”

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