News: CGF Challenger Ltd To Commence U.S. Dollar Annuity Reinsurance, page-64

Low interest environment with fixed liabilities, people living longer etc. not a great investment thesis.

@nator

Can you explain why a longer average lifespan and a low yield environment make it less likely that people will want security of income in their retirement (as that is what you seem to imply)?

Further political risk if annuity income is calculated at 100% instead of 60%.

Sure, but that only affects lifetime income streams (which are still a small proportion of CGF’s annuity mix). Also, the main effect of the income/asset test is to influence whether a prospective annuitant will want to choose a product with or without access to capital, not so much whether an annuity makes sense for them in the first place.

You can find an exhaustive explanation of the issue in the link below:

https://www.superguide.com.au/retirement-planning/means-test-treatment-of-lifetime-annuities-july-2019

Cheers