Fixed-income and annuity provider Generation Life has struck an alliance with global investment firm BlackRock to develop new retirement income products, with the latter taking a stake in parent company Generation Development Group.
The two firms stated the alliance would see them “setting a new standard for managing longevity and sequencing risk, with investment solutions developed in Australia for Australian retirees” based on their local and global retirement investment expertise, and joint working groups were already developing new products.
The new partnership follows Generation Development Group’s acquisition of Lonsec in 2024 and managed accounts group Evidentia earlier this year, and group chief executive Grant Hackett said BlackRock’s investment would boost its efforts to develop retirement income solutions that gave better outcomes for retirees and superannuation funds.
“This strategic alliance validates our proven track record and builds on the strong momentum Generation Life has achieved in recent years as we continue to expand our capabilities and grow our presence in the financial advice and retirement income sector,” Hackett said.
BlackRock head of Australia Jason Collins added the firm’s investment in Generation Development Group would bring its global retirement expertise and technology to the Australian marketplace through a local provider with a strong track record.
“By combining Generation Life’s technical expertise and product structuring capabilities with BlackRock’s scale in technology and investment management, this strategic alliance enables BlackRock to contribute to the development of the retirement income sector in Australia at a time of increased client and policymaker focus,” Collins said.
Generation Life and BlackRock noted many retirees where hesitant to spend their retirement savings due to the fear of outliving their capital and around 84 per cent of that money was in account-based pensions with minimal longevity protection.
“The result is underspending in retirement and increased financial insecurity among older Australians,” they said.
