Brighter Super to deliver new lifetime innovative retirement income solution to help members build income for life before retirement
Kate Farrar
Brighter Super has announced plans to deliver a new lifetime innovative retirement income solution providing income for life which is designed to enable eligible members to begin building future lifetime income benefits while they are still working.
The announcement marks a significant step in Brighter Super’s strategy to improve retirement outcomes. Brighter Super is also the first member-owned fund to announce the development of this style of product, that enables eligible members still in the accumulation phase to begin building future potential Age Pension benefits while still enabling choice as to how their super is invested.
Australia’s superannuation system has been highly successful in helping people accumulate retirement savings, but many Australians remain uncertain about how to convert those savings into a reliable income that lasts throughout retirement.
The new solution is designed to help address this challenge by allowing eligible members to begin building future lifetime income benefits during their working years, with greater income certainty and longevity in their retirement years. Together, these features will help them feel more confident about their financial future in retirement.
By beginning to accrue these benefits during the accumulation phase, members may be able to increase their overall retirement income, potentially improve their Age Pension outcomes depending on their individual circumstances, and gain greater flexibility and choice in how they structure their income in retirement.
Brighter Super’s modelling suggests members could receive additional income of between $70,000 and $95,000 on average over 25 years of retirement[1].
Brighter Super Chief Executive Officer Kate Farrar said the announcement reflected the fund’s commitment to helping members achieve better retirement outcomes.
“Australians have become very good at building super balances. The next challenge for our industry is helping people turn those balances into an income that provides confidence throughout retirement.”
“Bringing this approach to the member-owned sector is an important step. Rather than waiting until retirement to start thinking about lifetime income, we’re helping members begin preparing and maximising future retirement income outcomes while they’re still working.”
The initiative builds on Brighter Super’s growing retirement offering, which was recently recognised with the Epic Retirement Tick[2]. The new solution will further strengthen the fund’s support for members as they move from accumulating super to using their super to provide an income in retirement.
Brighter Super will develop the solution in partnership with leading life insurer TAL, who will provide the lifetime income guarantee underpinning the retirement solution.
Jenny Oliver, Chief Executive, Group Life & Retirement at TAL, said the partnership reflected a shared commitment to improving retirement outcomes for Australians.
We’re focused on helping more Australians have a confident retirement. TAL is proud to partner with Brighter Super on this lifetime income solution, because we’re passionate about helping more people plan for retirement and enjoy access to savings that can last for life.”
The solution will be introduced progressively, with the accumulation feature expected to become available to eligible members in the first half of 2027 and the guaranteed lifetime income option in 2028.
Together, the two components are intended to provide members with a connected pathway – from building retirement savings and future income benefits while they work to receiving a guaranteed income for life in retirement. Further details, including eligibility and how the accumulation feature will operate, will be announced as the delivery progresses.
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