TermPlus Accounts Reliable Monthly Income For Australian Retirees
Sydney, Australia, June 07, 2026 (GLOBE NEWSWIRE) — With annual inflation at 4.6% in the year to March 2026 and roughly 4.4 million Australians now aged 65 and over, retirees face a sharpening challenge: turning a lifetime of savings into income that keeps pace with the rising cost of groceries, fuel and everyday essentials. The pressure is compounded by longevity, with many Australians spending two or even three decades in retirement, and by a shift in mindset that retirement itself demands. In the accumulation years, investors can ride out market volatility and recover losses over time; in the drawdown phase, with shorter horizons and less capacity to recoup losses, the priority moves to predictable income and preserving purchasing power. To learn more visit https://termplus.com.au/insights-news/news/turning-savings-into-reliable-monthly-income-in-retirement/
That shift has prompted a broader search for income that does not rise and fall with the share market. One category drawing attention is the highly sought-after global private credit asset class, which has reached US$3.5 trillion globally, according to the Alternative Credit Council’s Financing the Economy 2025 report, and has been one of the fastest-growing asset classes in the world over the last 15+ years. TermPlus, a high-yield fixed-term account powered by Pengana Capital Group, gives everyday Australians access to that asset class. It is a registered managed investment scheme (ARSN 668 902 323) under Chapter 5C of the Corporations Act, issued by Pengana Capital Limited (AFSL 226 566) and managed by Pengana Credit Pty Ltd.
Many retirees structure their savings using a “bucket” approach, holding near-term spending in cash and dedicating a middle portion to income-generating investments. Within that income bucket, TermPlus can sit as one component alongside other holdings, with a defined term that aligns to a planning horizon and a monthly income stream that complements pensions, dividends or rent.
TermPlus account holders choose from three investment terms: one year, two years, or five years. Each has its own Target Rate, calculated as the Reserve Bank of Australia cash rate plus a fixed spread. As at May 2026, with the RBA cash rate at 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%), and the five-year Target Rate is 8.50%* per annum (RBA cash rate plus a fixed 4.15%). The fixed spread target stays the same for the duration of the chosen term, while the RBA component may move with each Reserve Bank decision, so income stays benchmarked above the cash rate as rates change. The minimum opening balance for a new account is A$2,000, with no setup fee, no monthly account fee, or transaction fee associated with the accounts, and all underlying management costs factored into the Target Rate, which is quoted net of fees.