According to a National Seniors Australia 2018 survey, 84% of older Australians rated having a regular and constant income as a very important factor in their financial planning. And with many Australians living longer, the need for lifetime income products that complement other investments has never been greater.
Challenger lifetime annuities give you an additional layer of protection in retirement by providing guaranteed income payments. They act as a safety net ensuring that you will receive income for life, regardless of how long you live or how investment markets perform.
Like any financial product, there are some risks you should consider before including annuities in your retirement plan. It’s best to speak with your financial adviser about these risks before you consider investing.
But what if I die early?
Challenger lifetime annuities have a long death benefit period based on life expectancy where a lump sum is payable to your estate or nominated beneficiaries. The death benefit is up to 100% of the amount invested. You have the flexibility to remove this feature in return for higher regular payments.
Take the risk away
Because annuities are not exposed to share market volatility, that risk when investing is reduced. It’s this protection from market risk that makes annuities very appealing, particularly following the impact the GFC has had for many people, both before and after retirement.
As you get older, you may have less interest in actively managing your retirement finances. But it can be even more important to make sure you’re provided for as you and your partner grow older. Making a plan now can ensure you're prepared for whatever the future may bring.