VicSuper and Challenger in annuities partnership

VicSuper has announced it has partnered with Challenger Limited to offer an integrated annuity offer to its members.

The Victorian-based industry super fund will expand its current suite of post retirement products by launching two new products in 2015, supported by Challenger's guaranteed term and lifetime annuities, to protect members against longevity risk.

"For members concerned about outliving their savings, annuities provide real longevity insurance," Challenger CEO Brian Benari said.

"Each VicSuper guaranteed pension will be backed by an annuity from Challenger Life, which is an APRA-regulated life company, whose shareholders are required to back annuity promises with enough capital to withstand 1:200 year adverse events."

VicSuper said its in-house financial planning team will be central to the offering, which will use a variety of products to create ‘layers' of income.

The fund said the partnership will expand the post retirement income solutions range with new products to diversify risks that members face.