Challenger says annuity sales grew 29% to $575 million in the three months to March 31.

Fixed-term annuity sales totalled $445 million for the quarter, compared with $365 million in the corresponding period last year.

Lifetime annuity sales were $130 million, up from $80 million in the corresponding period last year.

Challenger CEO Brian Benari says lifetime annuity sales have benefitted from putting the products on investment platforms.

“This resulted in flows through Colonial First State being up more than 100% on the corresponding period last year,” he said.

“We also saw 51% of platform sales from new advisers that haven’t traditionally sold Challenger annuities.”

He says Liquid Lifetime annuity sales have benefitted from strong demand for lifetime retirement income annuities, as advisers implement comprehensive retirement income models.

“Following the launch of CarePlus in August last year, the rollout and product education process continued during the quarter.

“CarePlus annuities contributed $15 million to lifetime annuity sales.”

Mr Benari says moves to change the Federal Government’s annuity rules are progressing.

“Treasury is currently setting the objective of super,” he said.

“This is critical to prepare Australia for one of the great social and economic issues of our time – the ageing of the population.

“Making it clear super is to provide income in retirement provides government and industry the framework to tackle this challenge.”

Mr Benari says this will be the first step in a series of reforms, including a review of retirement income stream regulations.