Commonwealth Superannuation Corporation (CSC) has partnered with Challenger to provide a longevity solution to meet members’ retirement needs.
From early 2024, Challenger’s product will be able to blend with CSC’s existing account-based pension as part of CSC’s Retirement Income Strategy.
CSC has more than 745,000 customers and $63.3 billion in funds under management, providing super for current and former members of the Australian Defence Force (ADF) and Australian Public Service (APS).
Customers will be provided with cohort-based retirement profiles that aim to simplify the journey around accessing retirement income.
Damian Hill, chief executive of CSC, said: “CSC has undertaken a detailed review of the options and providers available to help our customers address longevity risk in retirement and Challenger is our selected industry-leading provider.
“We’ve developed a number of retirement income solutions tailored to different customers’ needs, based on grouping our customers into cohort-based retirement profiles. The creation of these profiles was informed and guided by our customer research and independently reviewed by an external specialist.
“When we launch in early 2024 we’ll also provide customers with the support and guidance required to help them choose the retirement profile and solution that’s right for them. One that suits their balance of stability and sustainability of income, retaining the purchasing power of their income, as well as continuing to be able to access their capital.”
Challenger CEO and managing director Nick Hamilton said: “Like many older Australians, a significant cohort of CSC customers are worried their savings will run out, leading many to ‘under retire’ and unnecessarily reduce their quality of life. Leveraging our expertise in managing longevity risk, CSC can now offer their customers a solution that will provide guaranteed income in retirement and the confidence to draw down their savings.”
This is one of several super funds that Challenger has partnered with, following deals with TelstraSuper and Aware Super.
TelstraSuper announced Challenger has worked with the fund on a retirement income product called RetireAccess Lifetime Pension while Aware Super selected Challenger for a group lifetime annuity policy that will derisk the fund’s lifetime pension liabilities.
CSC was winner of the Smooth Ride category at this year’s Super Review Super Fund of the Year awards held in October. This recognised the fund that had best weathered the volatility of the market while still delivering strong outcomes.
