According to new research by Foresight Analytics, Australian private debt has been an increasing mainstay for investors approaching retirement age.

Foresight Analytics latest paper, titled Australian Debt Megatrends, stated that local private debt is the perfect retirement-age asset class due to its excellent track record in downside protection.

The asset class is also said to pay monthly or quarterly income and greatly mitigate sequencing risk for lower-balance retirees who may need to draw down on capital periodically.

“We note Challenger, the country’s largest player in the annuities market, has recently entered the Australian private debt market,” Foresight Analytics said.

The report emphasised two crucial aspects that should be considered by adviser groups who are interested in the asset class.

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