The option follows Bendigo Wealth’s partnering with Challenger Limited to expand client offerings amid a resurgence of interest in lifetime annuities.
“Income layering is becoming more popular so we’re seeing resurgent interest in the new generation of lifetime annuities which permit access to capital within the first 15 years of the policy,” Challenger’s general manger, key accounts and platforms, Rommel Hacopian said.
“We are experience very strong sale growth and believe our Bendigo Financial Planning relationship will be central to re-establishing lifetime annuities in the Australian market.”
According to actuaries and researchers Plan for Life, lifetime annuity sales in the quarter to September 30 were the highest recorded in 30 quarters and exceeded total annual sales recorded in six of the last seven years.
This resurgence of interest in lifetime annuities has driven Bendigo’s strategy for expanding its client offering.
“We wanted a solution to help Bendigo Financial Planning customers achieve a guaranteed minimum cash flow on top of any age pension entitlements – but without sacrificing liquidity,” Bendigo Wealth’s senior manager, business partners services, Joshua Parisotto said.
“This way they can retain exposure to growth assets without having to worry as much about volatility,” he said.
