CFS to move annuities on-platform
Adviser demand has driven Colonial First State to bring annuity products onto its two platforms by mid-2015.
A statement by CFS put the decision down to adviser demand, citing Investment Trends research.
In addition, the large wealth manager pointed to a "growing retirement focus from both the industry and the government".
"Several factors are behind this increasing focus: the baby boomer demographic is hitting retirement age and there is a growing population of retirees," the statement said.
"In addition, there is pressure on the sustainability of the aged pension and longevity risk is a major challenge for retirees."
Second, CFS pointed to a "growing acceptance" that an allocation to annuities can be part of an "optimal retirement strategy".
"The GFC acted as a wake-up call to sequencing and market risks, which are elevated risks for both pre-retirees and retirees," CFS said.
"Combining the flexibility of account-based pensions with an allocation to an annuity can be a good strategy for many investors.
"CFS modelling, global trends and academic research suggest that annuities will be an increasingly important part of the retirement solution," CFS said.
CFS executive general manager Linda Elkins said her organisation conducted "extensive market research as well as in-depth qualitative research with a wide range of financial advisers".
"Bringing annuities on-platform will reduce the amount of paperwork required and provide a more complete solution on-platform for advisers and their clients," Ms Elkins said.
Bravura to acquire Midwinter for $50m
Bravura Solutions has announced it has entered an agreement to acquire financial...
IRESS records 10% profit growth in 1H19
Advice software provider IRESS noted significant revenue growth in its APAC fina...
FPA members to be given education discounts
The Financial Planning Association of Australia has teamed up with five higher e...