MLC enters tripartite retirement partnership

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.”