Challenger has added its annuities to the platforms in the effort to grow the Australian annuities market.
Challenger chief executive Paul Rogan said: “This is an important development with the leading provider of retail investment platforms.”
“It is part of a growing superannuation industry trend to make retirement income strategies more readily available.”
Mr Rogan said offering annuities through platforms will increase their use.
“Access to annuities via platforms helps advisers meet clients’ needs to manage market, inflation and longevity risk,” said Mr Rogan.
“It facilitates an income-layering approach to retirement portfolio construction, which combines account-based pensions with annuities to manage retirees’ concerns of outliving their savings.”
According to Challenger, 65 per cent of financial advisers expect the availability of annuities through major platforms will increase the use of annuities.
Moreover, 27 per cent of advisers who said they do not currently recommend annuities, will within the next 12 months.
Industry fund VicSuper and administration provider AAS have also partnered with Challenger to make annuities available to their customers.
