AustralianSuper engages TAL to create income for life retirement option

AustralianSuper has taken the next step in its ambition for all members to live well in retirement by partnering with leading life insurer TAL to develop a new ‘income for life’ retirement option.

The engagement extends a longstanding partnership between TAL and AustralianSuper, protecting members during their working lives, to now supporting members' financial choices in retirement.

AustralianSuper’s Chief Retirement Officer, Shawn Blackmore, said the new option would be tailored for the Fund’s membership and designed to provide them with the confidence to spend the savings they had worked so hard to accumulate.

‘This is a major step forward for AustralianSuper and one that will go a long way in helping members to have the confidence to plan for and enjoy their retirement,’ Mr Blackmore said.

‘Retirement is deeply personal. There is no one size fits all so it’s important that we are able to provide products, advice and services to meet members’ individual needs.

‘For some, that means drawing down a regular income stream from their superannuation savings while also maximising the benefits of the Aged Pension. For others, it is providing the comfort that no matter what their retirement journey they have the certainty of an income for life through a longevity product. While for others it may be something else entirely.’

Mr Blackmore said AustralianSuper’s Retirement Income Strategy identified a cohort of members who may benefit from a lifetime income option supplementing an account-based pension and Age Pension.

‘A lifetime income option not only ensures members, and their partners, are able to have an income as they live, it may also enable a higher Age Pension entitlement through favourable asset and income test treatment.’

‘A great feature of our new proposition will be that members only need to invest a proportion of their savings into this option to give them a sense of security about their financial future.’

Mr Blackmore said that since 2009, TAL is a valued partner of AustralianSuper and currently provides insurance to around 1.4 million Fund members.

He said many members transitioning to and in retirement found the current superannuation system complex and difficult to navigate, creating additional stress and anxiety during a key period of change in their lives.

‘It’s our role to give members clarity, simplicity and confidence to spend the savings they have worked so hard for, and today’s announcement is a major step forward on that journey,’ Mr Blackmore said.

TAL Chief Executive Group Life and Retirement, Jenny Oliver, welcomed the extension of TAL’s partnership with AustralianSuper to deliver a new retirement income proposition that will give the Fund’s members greater financial certainty in retirement.

‘Our role is to protect members throughout their lives. We have a long history of protecting AustralianSuper members during their working years, and now we are delighted to have the opportunity to deliver a whole-of-life solution and provide protection to these members in their retirement, so they can enjoy these years with confidence and dignity,’ Ms Oliver said.

‘We look forward to partnering with AustralianSuper to provide retirement solutions that meet the evolving needs of members, particularly flexible lifetime income options, alongside access to guidance and financial advice, and supported by leading technology and digital capabilities.’

‘Retirement solutions are a strategic part of TAL’s protection proposition. We have and will continue to invest significantly in our capabilities to support our partners to deliver their retirement income strategies across member experience, product and digital.’

The new ‘income for life’ option is expected to be available in early 2025.