MLC enters tripartite retirement partnership

insignia/challenger/retirement-income/

image
image image
expand image

MLC has partnered with TAL and Challenger on a retirement solution, the first in a series of retirement income offerings for advisers to be launched over the next 18 months. 

Operating like a superannuation fund, parent company Insignia Financial said the MLC Retirement Boost will give Australians the potential to boost their income during retirement due to the concessional tax treatment of lifetime income streams. 

Set to be released in August, MLC Retirement Boost will be available on the MLC Expand platform for advisers to use with their superannuation clients.

A ‘Retirement Boost Optimiser’ will also help clients “visualise their total retirement income” across super, retirement and the age pension.

The firm explained that this partnership will benefit from Challenger’s expertise and distribution capability in retirement, which will help the product to achieve market scale. Meanwhile, TAL will be providing the adviser tool and be the insurer for a future Retirement Boost Pension product. 

A 'Centre of Excellence' will provide technical and distribution specialists from all three parties, new digital adviser tools and a retirement education hub including training modules and client education materials.

Reflecting on how retirement planning has evolved, Insignia Financial chief executive Scott Hartley said the new offering will provide the necessary tools to support the coming wave of Australian retirees.

“How Australians are thinking about, planning for, and entering retirement has changed. Until now the super industry has treated the accumulation and decumulation phases entirely separately, and we don’t think that accurately reflects how most people view retirement.

“MLC Retirement Boost will give Australians more personalisation and flexibility in their retirement planning, increase the potential of super for more people and potentially create higher retirement income, from their first super contribution,” Hartley said.

Utilising the combined expertise of Challenger and TAL, Hartley suggested there are more advancements in the pipeline for MLC and Insignia in the retirement space.

“This is just the first step in MLC’s offering in this space, and I’m excited for what’s to come over the next 12–18 months as we continue to enhance MLC Retirement Boost to provide advisers with more options and flexibility to deliver personalised retirement income strategies to their clients,” he said.

Nick Hamilton, chief executive and managing director of Challenger, said the firm is pleased to partner with MLC to enhance income solutions as Australia reaches such a “pivotal moment” in the retirement planning shift.

“Backed by 40 years’ experience in retirement innovation, investment management and distribution, we’re proud to help lead this shift – through partnerships like this – that will enable more Australians to have financial security in retirement,” Hamilton said.

“Our deep experience in retirement income means Challenger is uniquely positioned to help MLC scale faster and support more Australians to build stronger, more confident retirement strategies.”

TAL group chief executive and managing director, Fiona Macgregor, added: “This partnership reflects our commitment to supporting Australians through every life stage. As millions of Australians prepare for life after work, TAL is proud to partner on solutions that deliver better outcomes for retirees. Together, we’re focused on making retirement more secure and easier to navigate.”
 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

3 weeks 1 day ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

1 week 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5