Australian Retirees Seek Reliable Monthly Income From Global Private Credit as Inflation Bites and TermPlus Targets Up To 8.50%* Per Annum
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.
Income is calculated daily and paid monthly. Retirees can have those monthly distributions paid directly into a nominated bank account to fund regular spending, or reinvest them for compounding, switching between the two month to month as cash-flow needs change. The account is managed through a user-friendly dashboard that tracks applications, balances, earnings and tax statements, with monthly email confirmations of income earned and distributed.
Reliability of income is supported by three built-in layers of protection, underpinned by a Support Account that Pengana co-invests alongside account holders#.. In short, account holders are paid first: the Priority Income Entitlement gives them first claim on income the Support Account has earned over the prior 12 months if returns fall short in any given month; Income Stabilisation keeps the monthly income target calculated on the full invested amount; and Savings Support provides an end-of-term top-up of up to 5% of the Invested Amount to cover any shortfall#. Pengana reports that, since inception, TermPlus account holders have received 100% of their targeted monthly income payments*.
The portfolio behind those payments invests through more than 4,500 individually negotiated contractual loans, constructed with input from Mercer, a leading global investment consultant with over US$16 trillion in assets under advice as at 30 June 2023. The underlying loans are made to mid-market companies, typically earning between US$50 million and US$250 million, primarily in the United States and Western Europe. As an unlisted asset class, global private credit has generally been uncorrelated with listed stock markets, and currency exposures are hedged back to Australian dollars.
Retirees feature among the reviewers on the TermPlus reviews page. A retiree identified as Nick in the published case studies said the fixed target above the cash rate 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, said he had been with TermPlus about six months and was "happy with the income rate and my return each month."
TermPlus has most recently been named a finalist in the Innovation Fund of the Year category at the 2026 Fund Manager of the Year Awards and a finalist in three categories at the 2026 Finnies Awards hosted by FinTech Australia, including Excellence in Wealth Management, Most Innovative Fintech Product or Service, and Emerging Fintech Organisation of the Year. In addition, TermPlus won the 2025 Finder People's Choice awards in the innovation category. The product is also rated Approved with a Stable Outlook by BondAdviser and is also covered by Lonsec research. For more information visit https://termplus.com.au/insights-news/news/from-saving-to-spending-how-to-adapt-your-financial-mindset-for-retirement/
* 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.
#Refer to the PDS for full details of TermPlus product features, including the Support Account.
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.
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 www.termplus.com.au/important-information/
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1300 883 881 Support@termplus.com.au Governor Phillip Tower Level 27/1 Farrer Place Sydney NSW 2000
TermPlus Accounts Reliable Monthly Income For Australian Retirees
Income is calculated daily and paid monthly. Retirees can have those monthly distributions paid directly into a nominated bank account to fund regular spending, or reinvest them for compounding, switching between the two month to month as cash-flow needs change.
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