Australia's Challenger has launched a capital-protected annuity product aimed at retirees and investors who are seeking a regular income as part of their investment portfolio, with platform-based distributors in mind.
The product provides a regular income and capital guarantee over terms of three, five or seven years. Investors can choose the income level as well as a guarantee of capital if required between 10% and 100%.
"The creation of an annuity investment option required significant product development because, unlike most other platform products, annuities are flexible and bespoke policies sold to individuals. However, the high level of demand from financial advisers and their clients warranted the investment and we're very pleased with the end result," said Challenger Life chief executive Richard Howes.
The product is eligible for the tax-free superannuation wrapper although cash investors can also invest directly.
This product is available now in Recent Additions (Australia).