Three compelling reasons why now is a good time to invest in AGILE

In today's unpredictable financial landscape, the challenges – and potential opportunities – of retirement planning are more pronounced than ever. Market volatility, economic uncertainty and geopolitical events are shining a light on asset allocation and the importance of risk mitigation.

In the face of this unpredictability, and with our ever-increasing life expectancies, advisers are tasked with optimising clients’ retirement outcomes for even longer timeframes. As a result, there’s growing talk about the value of lifetime income products, such as AGILE, within retirement plans. And it’s a conversation worth having; AGILE has been designed specifically to provide predictability, protection and income certainty. 

With the market dynamics currently playing out, here are three compelling reasons why now is a good time to include AGILE in your clients’ retirement portfolios.

1. Interest rates are on the way down

While interest rate cuts are good news for those with mortgages, on the flip side, falling rates significantly impact savings. 

As rates decrease, fixed-income investments (such as bonds and term deposits) deliver lower returns. This decline in income poses a challenge to those retirees who rely on fixed-income investments for stable cashflow and for living expenses. In response, many retirees may feel compelled to seek alternative, riskier investments in search of higher returns to make up for this loss in income and maintain financial security in a low-rate environment. However, in doing so, they are potentially increasing their exposure to market volatility. 

To make matters worse, a low-rate environment can challenge the sustainability of retirement portfolios, as the reduced income may not keep pace with living expenses or inflation, potentially eroding purchasing power over time – delivering a sharp ‘one-two’ punch to financial confidence.

2. Volatility isn’t going anywhere, anytime soon

This year, global markets have been on a wild rollercoaster ride, reminding us of the complexities involved in retirement planning. 

In the first half of 2025 financial markets, particularly equities, experienced significant volatility - driven by a perfect storm of geopolitical tensions, shifting monetary policies and economic uncertainty. The ongoing tensions in Eastern Europe and the Middle East have contributed to investor unease, leading to fluctuations in share prices as markets react to unfolding developments in these regions. Meanwhile, the ever-changing prices of commodities, such as oil and gold, are placing downward pressure on traditional growth and defensive assets.

Additionally, central banks across major economies, including the US Federal Reserve and the European Central Bank, adjusted their monetary policies in response to growth shocks, with more uncertainty ahead.

3.  Ongoing geopolitical events

On the geopolitical stage, the drama continues to unfold. 

Locally, Australia is not immune to overseas trade conflict and political shifts  Also of note is the proposed Division 296 tax bill targeting super accounts exceeding $3 million which, though not yet enacted, has heightened uncertainty for certain clients. 

Meanwhile, across the ocean, the unpredictable US tariff announcements are adding layers of volatility and uncertainty, affecting economies both near and far. Tensions remain elevated, particularly in the Asia-Pacific region, where strategic competition between the United States and China continues to influence market dynamics. Australia, as a key ally of the US and with its proximity to China, is particularly sensitive to developments in this arena.

Guide your clients through uncertain times with a reliable, lifetime income solution

Retirees should not have to worry about inflation, market volatility or geopolitical events undermining their financial confidence. They certainly should not have to fear running out of money or having interest rate cuts undermine their income goals.

In these volatile times, AGILE delivers stability and security – helping your clients enjoy the best quality of life throughout retirement. AGILE has been designed to help create predictability in an uncertain world, providing increased confidence and comfort by: 

• removing the worry of running out of money by paying a guaranteed income for life 
• protecting against market risk by reducing the impact of market fluctuations 
• providing access to money whenever required to meet unforeseen expenses; and 
• creating income certainty leading to increased confidence for clients in the knowledge that they can afford to maintain their standard of living in retirement.