CFS takes partnership approach to retirement offerings

Mike Taylor

Managing Editor and Publisher

21 May 2026

Colonial First State (CFS) has become the latest player to enter into a partnership approach to delivering on its obligations under the Retirement Incomes Covenant via agreements with Challenger, Generation and BlackRock.

The CFS approach comes around 10 months after Insignia Financial announced its own approach via arrangements with Challenger and major insurer, TAL with the insurer having earlier taken up a 15% stake in Challenger.

CFS announced the new approach as “the largest-ever expansion of its retirement offering through a multi-partner alliance stating that it moved beyond product-led approach to a whole-of-life retirement model.

“CFS will integrate innovative retirement income solutions (IRIS) and the full suite of annuity capabilities from Challenger directly across all CFS platforms,” the announcement said.

“It will also integrate Generation Life’s investment-linked IRIS onto FirstChoice and investment bonds onto FirstChoice and CFS Edge, providing a tax-efficient alternative as Australia’s investment and retirement tax landscape continues to evolve.”

The announcement said the rollout of new solutions would begin from August with the introduction of a “Retirement Income Optimiser” on the FirstChoice platform, as well as a Pension Bonus feature for eligible CFS members.

It said further solutions would be introduced progressively over the next 12 months.

Confirming its role in the arrangement to the Australian Securities Exchange (ASX), Generation Development Group said its subsidiary Generation Life’s investment bonds and invest linked retirement income solution would be integrated into the CFS First Choice and CFS Edge platforms.

“The proposed integration is expected to provide advisers and clients with access to tax-efficient retirement product solutions designed to support evolving retirement income, intergenerational wealth transfer and estate planning needs,” it said.

The ASX announcement said the parties “are progressing commercial arrangements, with launch timing subject to agreed milestones”.

CFS Superannuation chief executive, Kelly Power said the expansion reflects a material capital commitment to supporting Australians across their entire retirement journey.

“By bringing together best-in-class global investment capability, local market-leading lifetime income expertise and tax‑effective structures, this integrated offering is designed to meet the increasingly complex financial needs of Australians. It recognises that retirement is no longer a single event, but a long-term financial journey that requires different solutions over time,” Power said.