NGS Super to launch lifetime income product

NGS Super has partnered with Challenger to provide guaranteed lifetime income for members.

The agreement will give the super fund's 32,000 members aged over 55 "greater certainty" through blending an account-based pension with a guaranteed, regular income for life through a group annuity. It's expected to be available from next year.

NGS chief executive Natalie Previtera described the partnership as a "natural fit".

"We share similar values and goals and want to help members create their best retirement. Helping our members retire with confidence is a key priority for us," Previtera said.

"Partnering with Challenger strengthens our ability to deliver on that goal, combining personalised service, simple education, and smart digital advice to make lifetime income easier to understand and access."

Challenger chief executive Nick Hamilton is pleased to contribute to providing greater confidence and financial security for NGS members.

"With rising living costs and ongoing market volatility, many retirees today live with the real concern of outliving their savings. Guaranteed lifetime income gives retirees confidence to spend, knowing their income is secure for life, and can be protected against inflation and market ups and downs," Hamilton said.

"Together with NGS's investment excellence and commitment to members' outcomes, this partnership offers retirees a genuine pay cheque for life."

Challenger is also currently working with Commonwealth Superannuation Corporation and TelstraSuper on similar products.

In December, Challenger took over the member accounts invested in Active Super's Guaranteed Income offering after it was determined moving to Vision Super under the merger of the two funds would not be in their best interests.

The collaboration comes as pre-retirees report feeling "more anxious" about their future while those who have already retired are living a happy life. That's according to the second annual Challenger Retirement Happiness Index.

The index, surveying some 1633 Australians aged over 60 to track factors driving retirement happiness, highlighted that pre-retirees are struggling to make retirement plans due to the rising cost-of-living and financial uncertainty.

Retirees reported higher scores of happiness (70), compared to pre-retirees (66). Three in four pre-retirees (76%) and 72% of the entire cohort said the rising cost of living has affected their financial security, with a third (34%) noting a significant impact.

While the overarching Index score edged down slightly to 69 (down from 70 in 2024) the key drivers of retirement happiness remained unchanged including activities (80), mental health and wellbeing (75), and a sense of purpose (72).

"Ask a happy retiree what brings them joy, and they won't just talk about their super balance. They'll talk about the coffee catchups, the morning walks, and the holidays they have planned to visit family or see the world The little things make a big difference - which is why activities and purpose are so important," Challenger chief executive, customer Mandy Mannix said.

"When we asked Australians over 60 what made them happy, three things stood out: good physical health (59%), enough money to enjoy life (41%), and good mental health (38%)."

The report also revealed that a third of women over 60 (34%) are "extremely or very worried" about outliving their savings, compared to 20% of men.