VicSuper partners with Challenger on annuities
Victorian-based industry fund, VicSuper has entered into a partnership with Challenger Limited to deliver an annuity offer to its members.
The fund announced the initiative today, claiming it would effectively become the first superannuation fund to provide an annuity offer.
Under the arrangement, VicSuper will expand its current range of post-retirement offerings by introducing two new products which are backed by Challenger's guaranteed term and lifetime annuities.
Commenting on the move, VicSuper chief executive, Michael Dundon described the partnership with Challenger as being a progressive move for the super funds industry.
VicSuper indicated that its in-house financial planning team would be integral to the offering, with the formal announcement saying that its in-house financial planning team would use a range of products to create ‘layers' of income.
"The partnership with Challenger will expand the post retirement income solutions suite by providing new, innovative products to help diversify the risks that members face," it said. "‘These contemporary annuities are one part of the income layering solution. They can assist members in maintaining a comfortable standard of living in retirement by providing certainty of income, flexibility, and peace of mind."
Challenger chief executive, Brian Benari acknowledged the importance of the arrangement, noting that the Challenger offering would complement VicSuper's account-based pensions.
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