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NZ annuities market will grow: Challenger

Wednesday 21st of March 2018

It is only a matter of time before there is increased demand for annuities in New Zealand, the chairman of the Retirement Income Group at Challenger in Australia says.

Jeremy Cooper has been in New Zealand talking about retirement income and annuities. In Australia, the Challenger business wrote A$1 billion ($1.07b) of lifetime annuities and A$3b in term annuities last financial year. That grew from zero in 2010.

New Zealand’s annuities market is still undeveloped by comparison to Australia’s but Cooper said the same pressures that had boosted it in Australia would apply here.

“As that pool of savings grows and the average age of the members of it is older, I think policy-makers here will be looking to Australia and see that we’ve been in this compulsory saving game a little bit longer and I think it’s only a matter of time before they look to what we’re doing and start thinking about longevity risk management, annuities, or other pool products, as a sort of bolt-on to KiwiSaver.”

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Latest Comments
FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
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