MLC partners with TAL and Challenger to provide financial advisers access to lifetime income streams in retirement
MLC, a division of financial services behemoth Insignia Financial, has partnered with life insurance company TAL and annuity provider Challenger to offer lifetime income streams to retirees.
These income stream products will be part of a new retirement income solution, called MLC Retirement Boost.
The companies have announced to establish a Centre of Excellence to support the distribution of the new retirement solution, and this centre will have distribution specialists, digital advice member journeys and modelling tools, including a new ‘Retirement Boost Optimiser’ tool, to help customers optimise their total retirement income across super, retirement and the age pension.
Concessional Treatment of Lifetime Income Streams
MLC Retirement Boost will operate like a standard superannuation account but has the potential to allow Australians to boost income during retirement due to the concessional treatment of lifetime income streams.
“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,” Scott Hartley, Chief Executive Officer of Insignia Financial, said.
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
“Gone are the days of people fully stopping work and withdrawing their super as a lump sum. Australians are choosing to work for longer, scaling back their hours or even changing careers later in life.
“They are travelling more, helping care for grandkids and enjoying their retirement journey in more individual ways.
“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,” he said.
More Retirement Products To Be Launched
Hartley flagged that MLC will expand the retirement product range in the year to come.
“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.
Financial advisers will be able to use MLC Retirement Boost with their superannuation clients from August 2025 and it will be available on MLC Expand platform.
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