Challenger is set to launch a retirement partnership with TelstraSuper in the first half of FY2024.
The partnership will provide TelstraSuper with a lifetime income stream for its members through lifetime annuities that provide longevity and inflation protection.
Advisers will help retiring members move into a retirement income solution that will include a Challenger lifetime annuity. This will be an account-based pension making up 75 per cent and a group annuity making 25 per cent.
The business has already launched a partnership with Aware Super last month on a defined benefit solution.
Challenger will provide a group lifetime annuity policy to the value of $619 million that will derisk the fund’s lifetime pension liabilities from investment, inflation, and longevity risk. This will cover 3,000 members and more than 100 employers, mostly in the Victorian public healthcare space.
The partnerships are part of Challenger’s ongoing focus on super as an area for growth in both its fund management and life insurance space.
This includes by helping them develop comprehensive retirement solutions, engaging with funds on their retirement offerings, and providing guaranteed income and derisking solutions.
In its financial results, Challenger said: “Currently, Challenger has a business relationship with the largest 25 Australian super funds. Challenger sees partnerships with super funds as a key growth opportunity and has been engaging with funds to help support them as they develop their retirement income propositions, as required under the Retirement Income Covenant.
“New partnerships with Aware Super and TelstraSuper highlight the breadth of our capability and the significant opportunity ahead as funds seek to deliver better outcomes for their members in retirement.
“The defined benefit pension market presents a significant growth opportunity for Challenger as an increasing number of corporate pension plans and superannuation funds look to de-risk their defined benefit pension liabilities.”
