Generation Life and BlackRock form strategic alliance to lead innovation in Australia’s retirement income sector
Grant Hackett
Generation Life, a market leader in tax-effective investing and a specialist retirement income subsidiary of Generation Development Group (ASX:GDG), has announced a strategic alliance with BlackRock.
By bringing together Generation Life and BlackRock’s local and global retirement investment expertise, the two firms are focused on setting a new standard for managing longevity and sequencing risk with investment solutions developed in Australia for Australian retirees. As part of its long-term commitment to the alliance, BlackRock will acquire a minority stake in Generation Development Group.
Grant Hackett OAM, Group CEO of Generation Development Group said, “BlackRock’s investment in Generation Development Group strengthens our shared commitment to reshaping retirement income through innovation, continuing to build market-leading solutions that deliver superior outcomes for retirees and superannuation funds, while creating long-term value for financial advisers and our shareholders.
“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.”
Jason Collins, Head of BlackRock Australia, said, “BlackRock’s investment in Generation Development Group will ensure the best of our global retirement expertise and technology is delivered to the Australian marketplace through a proven local innovator.
“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.”
Australia’s retirement paradox: Wealthy but wary
The growing needs of Australian retirees, combined with the federal government’s focus on the Retirement Income Covenant, presents an urgent challenge. Many retirees remain hesitant to spend their savings due to the fear of outliving their capital, while financial advisers and super funds grapple with limited fit-for-purpose solutions.
Australia ranks fourth in the world for life expectancy[1] and Australians over 50 now control 69%[2] of the nation’s $4.2 trillion in superannuation assets[3] —a figure projected to reach $9 trillion by 2040[4]. There are currently over 4 million retirees, with that number expected to grow by 670,000 in the next five years[5]. Australia is also one of the wealthiest nations globally[[6], with the average total net wealth of a Baby Boomer household sitting at $2.31 million.[7] Yet despite this, around 84% of Australian retirement savings are in account-based pensions with minimal longevity protection[8]. The result is under-spending in retirement and increased financial insecurity among older Australians.
A platform built for the future of retirement
Generation Life has a strong history in delivering flexible, innovative investment strategies and solutions for financial advisers and their clients, designed to support the evolving needs of Australian retirees. Its reinsurer arrangement and scalable administration infrastructure offer superannuation funds a turnkey platform to develop or enhance retirement offerings – without the burden of building complex in-house systems.
The strategic alliance marks a transformational step for Generation Life and a key milestone in Generation Development Group’s growth strategy, building on strong momentum following its acquisitions of Lonsec in 2024, and managed accounts group Evidentia earlier this year.
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