Australian Retirees Look to Leverage Retirement Capital To Generate Reliable Monthly Income - TermPlus June 2026 Two-Year Fixed-Term Account Delivers 8.00%* Per Annum
Sydney, Australia, June 18, 2026 (GLOBE NEWSWIRE) -- Australia's retiree population continues to grow. Around 4.4 million Australians are now aged 65 and over. That's about 17% of the population, according to Australian Bureau of Statistics demographic data. The latest Australian Treasury Intergenerational Report projects that share will keep rising through 2063. The shift creates a structural challenge. More Australians are entering the drawdown phase of their financial lives. The priority moves from accumulating wealth to converting it into a reliable monthly income for the years ahead. To learn more visit https://termplus.com.au/insights-news/news/turning-savings-into-reliable-monthly-income-in-retirement/
One product well-positioned to deliver for that monthly drawdown phase is TermPlus. It is a high-yield fixed-term account powered by ASX-listed Pengana Capital Group. TermPlus is a registered managed investment scheme (ARSN 668 902 323) under Chapter 5C of the Corporations Act. It is issued by Pengana Capital Limited (AFSL 226 566) and managed by Pengana Credit Pty Ltd. Pengana Capital Group is the ASX-listed parent (ASX: PCG). The group was founded in 2003 and reported over A$3.7 Billion in funds under management at 31 May 2026.
The shift from accumulation to drawdown changes how income products are evaluated by investors. In the accumulation phase, which typically has a longer investment timeframe, volatility is often accepted as the cost of higher long-term returns. In drawdown, volatility becomes a direct threat to lifestyle. Spending decisions get made against the monthly income figure that actually arrives. What matters most in retirement is reliability of payment, predictability of amount, the ability to adjust with inflation, and stability of capital. Those are different priorities to the ones that drive accumulation.
With TermPlus, account holders choose from three fixed terms: one year, two years, or five years. Each term has its own Target Rate, calculated as the Reserve Bank of Australia cash rate plus a fixed margin. As at June 2026, the RBA cash rate is 4.35%. The one-year Target Rate is 7.35%* per annum (RBA cash rate plus a fixed 3.00%). The two-year Target Rate is 8.00%* per annum (RBA cash rate plus a fixed 3.65%). The five-year Target Rate is 8.50%* per annum (RBA cash rate plus a fixed 4.15%). The fixed margin stays the same for the duration of the chosen term. The RBA component may move with each Reserve Bank decision. The minimum opening balance for a new account is just A$2,000. TermPlus is available to personal, joint, SMSF, company, and trust accounts.
For individual retirees, the term-length choice is a different planning question to the one accumulators face. A one-year term may suit an investor who wants to keep capital redeployment an option. A five-year term may suit an investor with a longer drawdown horizon. The five-year option locks in the higher spread target above the cash rate. Some retirees use a laddering approach. They stagger maturity dates across one, two, and five-year terms. The approach balances access to capital with longer-term income requirements.
Returns paid to TermPlus customers are calculated daily, and paid monthly as income. Account holders can have those monthly distributions paid directly into a nominated bank account. They can also reinvest the income to compound over the term. Since inception, TermPlus account holders have received 100%* of their targeted monthly income payments.
The TermPlus portfolio invests in the highly sought-after global private credit asset class. It does this through more than 4,500 individually negotiated contractual loans. The portfolio is built with input from Mercer, a leading global investment consultant. Mercer has over US$16 trillion in assets under advice as at 30 June 2023.
The TermPlus reviews page features comments from retirees. A retiree identified as Nick in the published case studies spoke about the fixed target above the cash rate. He said it gave him "comfort knowing that there is a predictable and reliable level at which my income payments will be bench-marked." Patrick P, 65, from New South Wales, has been with TermPlus for about six months. He said he was "happy with the income rate and my return each month."
TermPlus is currently a finalist for Innovation Fund of the Year at the 2026 Fund Manager of the Year Awards. It is also a finalist in three 2026 Finnies Awards categories hosted by FinTech Australia. The three categories are Excellence in Wealth Management, Most Innovative Fintech Product or Service, and Emerging Fintech Organisation of the Year. For more information visit https://termplus.com.au/
The issuer of units (Term Accounts) in TermPlus (ARSN 668 902 323) is Pengana Capital Limited (Pengana) (ABN 30 103 800 568, AFSL 226 566). Any advice provided is general in nature and does not take into account particular objectives, financial situation or needs. Before investing in TermPlus, consider the PDS, TMD and further details on their website at termplus.com.au/important-information/
Mercer Consulting (Australia) Pty Limited (ABN 55 153 168 140, AFSL 411 770), which is a wholly owned subsidiary of Mercer (Australia) Pty Ltd (ABN 32 005 315 917) (Mercer Australia) collectively referred to as Mercer. References to Mercer shall be construed to include Mercer LLC and/or its associated companies. 'MERCER' is a registered trademark of Mercer Australia.
*Any reference to a target rate is current as of today, and is a reference to the investment objective for the relevant account option in TermPlus, which may vary. Importantly, target rates are not guaranteed, and any investment is subject to investment risks. Any forecasted returns may not reflect actual performance and past performance is not a reliable indicator of future performance.
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1300 883 881 Support@termplus.com.au Governor Phillip Tower Level 27/1 Farrer Place Sydney NSW 2000
TermPlus Delivers Monthly Income For Australia’s 4.4 Million Retirees
TermPlus Fixed-Term Accounts Delivers Monthly Income Catering To Australia’s 4.4 Million Retirees
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