Sydney, Australia, June 10, 2026 (GLOBE NEWSWIRE) — Australians planning for retirement income face two converging trends. Around 4.4 million Australians are now aged 65 and over, about 17% of the population, with Treasury’s Intergenerational Report projecting that share to keep rising through 2063. At the same time, the country’s 663,867 self-managed super funds hold A$1.06 trillion in assets across roughly 1.22 million members, according to the latest Australian Taxation Office data. Cash and term deposit allocations across the SMSF sector have fallen to 16.3% of holdings, a record low, as trustees look beyond traditional cash products towards the income side of the portfolio. To learn more visit https://termplus.com.au/how-it-works/
Both groups face the same core challenge. Retirees in the drawdown phase of their financial lives, and SMSF trustees building income-focused portfolios on behalf of members, need to convert accumulated capital into reliable monthly income that can hold its real value over time.
One product positioned for this combined audience is TermPlus, a high-yield fixed-term account powered by ASX-listed Pengana Capital Group. 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. Pengana Capital Group, the ASX-listed parent (ASX: PCG), was founded in 2003 and reported A$3,665.63 million in funds under management at 30 April 2026.
The shift from accumulation to drawdown has changed how income products are evaluated. In the accumulation phase, volatility is often accepted as a cost worth bearing for the potential for higher long-term returns. In drawdown, volatility becomes a direct threat to lifestyle, because spending decisions are made against the monthly income figure that 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.
TermPlus accounts carry three built-in layers of protection, designed to support reliability of income and stability of capital. All three are underpinned by a Support Account, which is a 5% co-investment made alongside TermPlus account holders#. Each built-in layer of protection is designed to address a different requirement that an income-focused investor may have.
Pengana reports that, since inception, TermPlus account holders have received 100% of their targeted monthly income payments*.
Account holders choose from three fixed 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 margin. 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 margin stays the same for the duration of the chosen term, while the RBA component may move with each Reserve Bank decision.
For SMSF trustees and 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 over the medium term. A five-year term may suit an investor with a longer drawdown horizon who wants to lock in the higher spread target above the cash rate. Some may even use a laddering approach, staggering maturity dates across one, two, and five-year terms, to balance access to capital with longer-term income requirements.
Income on a TermPlus account is calculated daily and paid monthly. 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.
The TermPlus portfolio invests in the highly sought-after global private credit asset class through more than 4,500 individually negotiated contractual loans, with input from Mercer, a leading global investment consultant. The underlying loans are made to mid-market companies, typically with annual earnings between US$50 million and US$250 million, primarily in the United States and Western Europe, with some Australian exposure. Currency exposures are hedged back to Australian dollars.
TermPlus is available to personal, joint, SMSF, company, and trust accounts, with a minimum opening balance for a new account of just A$2,000. For SMSF trustees, this positions TermPlus as one income component sitting alongside other asset classes within a broader investment strategy that has the potential to deliver superior diversification.
Reviewers from both groups appear on the TermPlus reviews page. David C, 78, from South Australia, said he has opened four accounts across one-year and two-year terms to stagger maturity dates, choosing to reinvest the monthly payments, and considered the product “an excellent means of diversifying the investments held in my SMSF.” 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.”
TermPlus is currently a finalist in the Innovation Fund of the Year category at the 2026 Fund Manager of the Year Awards. It is also a finalist in three 2026 Finnies Awards categories hosted by FinTech Australia: Excellence in Wealth Management, Most Innovative Fintech Product or Service, and Emerging Fintech Organisation of the Year. TermPlus won the 2025 Finder People’s Choice award in the innovation category. The product is rated Approved with a Stable Outlook by BondAdviser and is also covered by Lonsec research. For more information visit https://termplus.com.au/
*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/.
- TermPlus Fixed-Term Accounts for SMSF Investors and Australian Retirees