VicSuper has cut new ground in the superannuation space by joining with Challenger to deliver a hybrid annuity-type product.
The superannuation fund announced the arrangement on Wednesday, describing it as Australia's first comprehensive income product for retirement (CIPR) style solution by a public offer super fund.
The fund's announcement said VicSuper had integrated two new guaranteed retirement products with its existing allocated pension product to form a comprehensive retirement income solution.
It described both products as "bespoke investments" with new features developed jointly by VicSuper and Challenger Limited.
Commenting on the move, VicSuper chief executive, Michael Dundon, described the fund's partnership with Challenger as a progressive move for the Australian super industry.
"...it will provide our members with greater choice in how they structure their income in retirement," he said.
Dundon said that to provide a continuous, assured income stream for retirees, VicSuper's team of more than 50 in-house financial planners used a range of products to create 'layers' of income.
Challenger chief executive, Brian Benari said his firm was pleased to have been chosen as VicSuper's first longevity solution provider.