MLC, a key brand under Insignia Financial, has entered into a partnership with TAL and Challenger to launch a Centre of Excellence focused on retirement income solutions.
The collaboration will underpin the rollout of MLC Retirement Boost, a product designed to address the evolving needs of Australians approaching retirement.
The new solution will be made available to financial advisers on the MLC Expand platform starting August 2025.
The Centre of Excellence will provide advisers with access to distribution specialists, digital advice pathways, and a suite of modelling tools.
Among these is the Retirement Boost Optimiser, a tool developed to help clients understand their projected retirement income by factoring in superannuation, retirement savings, and government pension entitlements.
Challenger will contribute its retirement distribution expertise, supporting the expansion and market reach of the new product.
MLC Retirement Boost is structured to function like a traditional superannuation account, but it incorporates features that may enable higher income in retirement. This is achieved through the concessional treatment of innovative lifetime income streams, in line with recent regulatory changes.
The product is positioned as a resource for advisers seeking to help clients navigate the transition from accumulation to decumulation phases of superannuation.
Scott Hartley (pictured centre), CEO of Insignia Financial, said the partnership is a response to the changing landscape of retirement in Australia. He noted that more than three million Australians are expected to retire in the next decade.
“MLC wants to redefine what retirement means for Australians and superannuation’s role in it,” he said.
He said the traditional separation between saving for retirement and drawing down on those savings is becoming less distinct, as many Australians are choosing to remain in the workforce longer, reduce their hours, or change careers later in life.
“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,” Hartley said.
Hartley noted that the new solution aims to provide greater flexibility and personalisation in retirement planning. He also highlighted the role of financial advisers in helping clients make informed decisions about their retirement income options.
“Recognising the critical role financial advisers play in retirement planning and delivering high-quality retirement advice, MLC Retirement Boost will be available for advisers to use with their superannuation clients from August 2025 on MLC Expand,” he said.
TAL’s group CEO and managing director, Fiona Macgregor (pictured left), said the partnership is intended to deliver a retirement solution tailored for MLC Expand platform users.
“We’re excited to extend our partnership with MLC to design and develop an innovative retirement solution for MLC Expand platform clients. This partnership reflects our commitment to supporting Australians through every life stage,” she said.
She added that TAL is working to make the retirement process more straightforward for clients and advisers.
Challenger CEO and managing director Nick Hamilton (pictured right) said the partnership marks a significant development in the retirement income sector.
“This is a pivotal moment in Australia, as retirement income moves from the sidelines into the mainstream. Backed by 40 years’ experience in retirement innovation, investment management, and distribution, we’re proud to help lead this shift – through partnerships like this – that will enable more Australians to have financial security in retirement,” he said.
The launch of MLC Retirement Boost comes at a time when Australia’s life insurance sector is under increased regulatory scrutiny.
The review found that some premium increases were not always consistent with policy contracts or customer expectations, particularly for products marketed as “level premium.”
By the end of 2024, Australians were spending about $9.4 billion annually on individually held life insurance policies purchased through advisers.
Insurers have attributed rising premiums to factors including age-based increases, cover indexation, and changes in base rates.
The regulatory review has highlighted the need for clearer communication and product structures to ensure policyholders understand how premiums are set and adjusted.
