POWERED BY MOMENTUM MEDIA
CFS sees benefits from annuities platform performance
Following the 2015 introduction of CommInsure and Challenger annuities on platforms, Colonial First State (CFS) is launching new deferred lifetime annuities via platform off the back of an 80 per cent increase in sales of lifetime annuities.
CFS will offer deferred lifetime annuities on both FirstChoice and FirstWrap which general manager, product and investments, Peter Chun said will change up the underlying strategies to meet the growing needs of a diverse customer base.
“We’re expecting to see strong interest from advisers in these products as customers begin to take greater consideration of longevity risk,” he said.
“Our research will look at ways of evolving this strategy to incorporate new products as they come to market, as well as gaining a deeper understanding of the challenges that advisers and customers face through the different stages of planning for retirement.”
Chun said the increase of interest around the annuities space had been driven by new offerings which better combined various strategies.
“Insights from our existing customer base include an 83 per cent jump in lifetime annuity sales in the last financial year, demonstrating the growing popularity of the so-called ‘income layering strategy’ which combine annuities with account-based pensions and the age pension to meet customers’ retirement needs,” he said.
Deferred lifetime annuities on both FirstChoice and FirstWrap will be available from September.
AUTHOR
Hope William-Smith
Hope is a journalist with Super Review. She has previously worked across a range of business and lifestyle titles. Hope has a degree in International Relations and joined the Super Review team after completing a Masters in Law, Media and Journalism.
Recommended for you
While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their involvement in addressing the substantial capital requirements vary widely.
Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has suggested.
HESTA has slammed Woodside’s climate transition action plan, pointing to “significant” gaps.
All merger proposals will have to be approved by the consumer watchdog under the sweeping merger reforms announced by the government on Wednesday.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment