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.
