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Link Group and Allianz Retire+ announce partnership
The deal would enable Link Group’s superannuation fund clients to access a suite of Allianz Retire+ next generation retirement income solutions.
This would include the newly launched longevity solution Allianz Guaranteed Income for Life (AGILE). The product would be accessible on Link Group’s retirement platform Pathfinder in the second half of 2023.
AGILE would deliver super fund members a guaranteed income for life as well as greater certainty and stability for those planning to retire.
The product would be available within funds as an investment option in the late accumulation phase and within account-based pensions. It would also be available to financial advisers via their client platforms.
Speaking to Super Review, Adrian Stewart, Allianz Australia Life Insurance’s chief executive, explained that AGILE filled the gap in the market for greater longevity solutions.
“In deciding that we would invest in leading-edge technology, the natural next step was to talk to Link Group, who have a 40 per cent market share in superannuation administration,” he said.
“The big game changer here is that the AGILE solution will be embedded inside the members’ account-based pension as an investment option. This is the first time a retirement solution will be delivered through this mechanism.”
Stewart explained that the Retirement Income Covenant (RIC) was a catalyst in creating the new retirement solution.
Moreover, the call to action from the Australian Prudential Regulation Authority (APRA) for life companies to deliver the next generation of solutions also underpinned AGILE’s creation.
Pathfinder, Link Group’s cloud-enabled retirement platform, was designed to provide funds and their members with an array of integrated tools, digital services, and product solutions to assist with retirement planning.
Stewart added that the deal would enable members to have wider flexibility and control over their retirement income.
“We recognise the importance of delivering retirement solutions within existing ecosystems to make it easier for super funds and retirees to access,” Stewart said.
“[AGILE] allows you to accurately forecast and plan what your guaranteed income is going to be for life much earlier than you’ve ever been able to do.”
Dee McGrath, CEO of retirement and superannuation solutions at Link Group, commented that the partnership represented a noticeable shift in retirement solutions.
“The super industry has seen a real shift in focus towards retirement and decumulation, with strong demand for development of innovative solutions like AGILE,” she said.
“This partnership gives our clients access to a product suite that solves for market and longevity risk, creating more certainty for members with a guaranteed income for life.”
The Allianz Retire+ CEO alluded that multiple projects were on the horizon, with AGILE being the first of many retirement solutions.
“Just as we have done with Link Group to service superannuation markets, we are also working with wealth management platforms,” McGrath said.
Stewart highlighted the importance of delivering new solutions to service Australians and the deeper fear of running out of money in retirement.
“We as an industry have a moral imperative to solve the retirement dilemma that every Australian faces, which they might not realise they’re facing until they are nearing retirement or in retirement,” he continued.
“We need to work harder to bring solutions, though it’s not easy to innovate in this space.”
AUTHOR
Jasmine Siljic
Jasmine Siljic is a cadet journalist at Money Management and Super Review. Prior to joining MM and SR, she also worked across other Momentum Media brands as an intern. Jasmine previously completed an internship at Mamamia news. She is currently studying a Bachelor of Media and Communications at Macquarie University.
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