Acenda Life has expanded into the retirement market with the launch today of its Lifestream guaranteed income product.

“This is the first in a suite of modern retirement solutions we’re building in response to the growing need for financial confidence,” chief commercial officer Sean McCormack said.

Acenda says the product addresses the challenges posed by longer lifespans, providing predictable, guaranteed income for life.

“A dignified retirement is a financial and social imperative for all Australians,” Mr McCormack said.

“With Australians living longer and living costs rising, retirees are worried about whether their savings will be enough. There is a clear opportunity for the industry to create more predictable retirement income solutions that give Australians confidence and certainty in their financial future.”

The Australian Prudential Regulation Authority is considering changes to the capital framework for retirement offerings, also known as annuity products.

In a submission to the regulator, the Council of Australian Life Insurers noted the current capital requirement was “one of the limiting factors to the development of a vibrant and diverse market for longevity products”.

It says APRA’s proposed changes will benefit insurers “through a higher illiquidity premium that will reduce capital requirements and allow liabilities to be better matched to underlying assets”.