Under the agreement, Suncorp's financial planning network will offer clients a Suncorp-branded annuity product through Challenger.
Suncorp chief executive and managing director Michael Cameron said the product would provide "certainty on investment returns".
"By offering a Suncorp-branded annuity product, we are able to meet more of our customers’ needs by providing them with another avenue to manage their finances," Mr Cameron said.
"We continue to operate in a low-rate, low-growth environment and this type of product is designed to provide customers with a way to deliver a reliable income stream once they have stopped working."
Challenger chief executive and managing director Brian Benari noted that the number of over-65s is expected to grow to more than 7 million by 2056.
"As customers move towards retirement they need the kind of stable income and long-term financial security that guaranteed annuities provide," Mr Benari said.
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