For over seventy years, La Trobe Financial has been trusted by Australians to deliver consistent returns and resilient portfolios. As Australia’s premier alternative asset manager, we understand that retirement is not just about stopping work, it’s about securing a dignified retirement supported by durable income streams.
In this article, we explore how private credit can play a central role in retirement, how La Trobe Financial’s award-winning accounts~ provide dependable monthly income, and why with $21 billion in assets under management and more than 120,000 investors,^ La Trobe Financial is a leader in retirement-focused income solutions.
What is Private Credit?
Private credit refers to lending and investment opportunities outside traditional banking channels. Instead of relying on public debt markets, investors can access returns through carefully managed portfolios of loans and mortgages.
At La Trobe Financial, our 12 Month Term Account taps into Australia’s large residential and commercial mortgage market, offering investors exposure to a diversified portfolio of income-generating assets.
How Private Credit Can Help Support Retirement Income
- Predictable Income: Private credit often delivers monthly distributions, ideal for retirees who are seeking regular cash flow.
- Diversification: It provides an alternative to equities and public debt, reducing reliance on volatile markets.
- Resilience: With disciplined underwriting and risk management, private credit can remain stable even in uncertain economic conditions.
Things to Consider: As with all investments, private credit carries risks, including lower liquidity, exposure to borrower performance, and the absence of any government guarantee. Retirees should ensure it suits their personal time horizon and income requirements.
Retirement Income Challenges in Australia
Australians face unique challenges when planning for retirement:
- Longevity Risk: People are living longer, requiring income streams that last decades.
- Market Volatility: Equity markets can fluctuate, making retirees vulnerable to downturns.
- Low Yields: Traditional term deposits and government bonds may at times deliver lower returns.†
This is where La Trobe Financial’s private credit solutions step in, providing retirees with predictable monthly income, low volatility, and resilience, key factors for managing longevity risk and market uncertainty. However, unlike a term deposit offered by a bank, La Trobe Financial’s investment products are not guaranteed by the Australian Government.
La Trobe Financial’s Portfolio Accounts
Our pooled portfolio accounts are designed to deliver consistent income while protecting capital.
12 Month Term Account
Recognised by Money magazine as Best Private Credit Fund – Mortgages for 17 consecutive years.
Provides monthly distributions, making it ideal for retirees seeking predictable income.
Backed by La Trobe Financial’s disciplined risk management and diversified loan portfolio, our 12 Month Term Account has delivered zero investor losses since inception in 2002, even through market volatility.*
Learn more: 12 Month Term Account
Classic Notice Account
Generally, access to your funds after two business days’ notice is provided,
Explore: Classic Notice Account
Private Credit Fund (ASX: LF1)
Listed on the ASX, offering liquidity, transparency and accessibility.
Provides exposure to diversified private credit assets via the 12 Month Term Account and La Trobe US Private Credit Fund.
Details: La Trobe Private Credit Fund
Explore All Investment Accounts
A Human Approach to Retirement
At La Trobe Financial, we believe retirement should be lived with dignity and confidence. Our personal service ensures all investors can invest in tailored solutions with a genuine human touch. Whether you are planning for retirement or already enjoying it, our private credit strategies are designed to look out for you, so you can look after the ones who matter most.
Conclusion
We consider that private credit is a mainstream solution for retirees seeking dependable income. With La Trobe Financial’s award-winning accounts~, disciplined management, and decades of experience, Australians can trust us to help deliver retirement income that lasts.
Start building your retirement income today. Explore our full range of Investment Solutions and discover how private credit can support your retirement journey.
La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321 and the La Trobe Private Credit Fund ARSN 686 964 312 (ASX:LF1). It is important that you consider the relevant Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on our website.
*Past Performance is not a reliable indicator of future performance.
†An investment in the La Trobe Australian Credit Fund is not a term deposit offered by a bank, and has a different risk profile. You should take this fact into account when considering an investment in the Fund.
~To view our Awards please visit the Awards and Ratings page on our website.
^Total investors is calculated by adding all individual & joint investors (which includes some investors with a current zero balance in their account) to reasonable estimates of investors investing via trusts or SMSFs.
Any advice is general and does not consider your personal circumstances.
