Challenger gains retirement covenant inside lane

Challenger has gained an early inside lane as a result of the Retirement Income Covenant being selected by the Commonwealth Superannuation Corporation to roll out a solution next year which will also generate annuity referrals.

The arrangements to be rolled out in 2024 is based on qualitative and quantitative research which will see members of the CSC funds being offered longevity solutions that can be blended with CSC’s existing account-based pension.

At the same time, the formal statement says that “CSC customers who may benefit from an annuity as part of their solution will be referred to a CSC representative before finalising their decision”.

Announcing the move, CSC chief executive, Damien Hill the strategy aims to provide customers with innovative retirement solutions and support and guidance, regardless of the path they choose in their retirement.

“Customers are guided through the use of customer cohort-based retirement profiles, simplifying their journey to accessing retirement income,” he said.

“We’ve developed a number of retirement income solutions tailored to different customers’ needs, based on grouping our customers into cohort-based retirement profiles.”

“The creation of these profiles was informed and guided by our customer research and independently reviewed by an external specialist. When we launch in early 2024 we’ll also provide customers with the support and guidance required to help them choose the retirement profile and solution that’s right for them. One that suits their balance of stability and sustainability of income, retaining the purchasing power of their income, as well as continuing to be able to access their capital.”