Yet living the retirement lifestyle they want depends on having stable sources of income guaranteed for life, because who knows how long life may be? Today, there’s no reason why living longer shouldn’t mean living well and without the fear of running out of money.
Fortunately, Age Pension means test rules have changed to encourage lifetime income streams, such as lifetime annuities, that can complement the Age Pension.
It’s time to make sure your clients aren’t missing out.
Can you help build a recession proof retirement?
Helping to build a recession proof retirement for clients might seem like a daunting undertaking. However, the appropriate application of different strategies, structures and investments can make a material difference to retirement outcomes in a range of economic circumstances, including recession.
Take, for example, the very simple concept of diversification. A diversified range of income streams from different structures and investments will, in many circumstances, provide a more resilient retirement income than income from a single source. Similarly, the addition of guaranteed lifetime income to a client’s retirement income can ensure that not all retirement income is exposed to the market and expenses met by this income continue to be met, come what may in investment markets.
When your client invests into an annuity with Challenger, their money is placed into a secure fund, along with money received from other annuity investors. Challenger also contributes money into this fund, which is known as a ‘statutory fund’. All regular payments to our annuity investors are made from this statutory fund.
Challenger’s lifetime annuities are guaranteed by Challenger Life, a life company regulated by the Australian Prudential Regulation Authority (APRA). Challenger Life holds significantly more capital in the statutory fund than the APRA minimum. So even if an unfortunate event occurs, or there is a significant share market or property crash, your clients’ annuity and future payments are still guaranteed.
Good news: means testing rules hold opportunities
Australians are living longer and spending more. So, it’s a good thing Age Pension rules for lifetime income streams can help your client’s retirement income last longer.