Industry superannuation fund VicSuper in partnership with Challenger has integrated three products to create a “comprehensive” retirement income product for its members.
VicSuper said it has integrated two new retirement income products with its existing allocated pension product to create a “comprehensive” retirement income solution based on similar ideas outlined in the Financial System Inquiry (FSI) report.
“The integration of customised longevity insurance products with an allocated pension mirrors the philosophy outlined in the [FSI] report around pooling funds in a [product] to manage longevity risk and increase private incomes for Australians in retirement,” a statement from VicSuper said.
The industry fund explained the “comprehensive” retirement income product was created through the integration of two new retirement products with its existing allocated pension product.
“VicSuper Guaranteed Income for Life is similar to a contemporary lifetime annuity while Guaranteed Fixed Term Income is similar to a fixed-term annuity,” the statement said.
“Both products are bespoke investments with new features developed jointly by VicSuper and Challenger Limited, and are backed by the balance sheet of Challenger Life Company Limited.
“They are intended to supplement use of the VicSuper Flexible Income allocated pension, which provides underlying investment choice, liquidity, and the ability to draw variable income,” it said.
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