Generation Life and BlackRock Form Strategic Alliance to Lead Innovation in Australia’s Retirement Income Sector

Melbourne, Australia, 8 May: Generation Life, a market leader in tax-effective investing and a specialist retirement income subsidiary of Generation Development Group (ASX:GDG), has today 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 expectancy¹ and Australians over 50 now control 69%² of the nation’s $4.2 trillion in superannuation assets³—a figure projected to reach $9 trillion by 2040⁴. There are currently over 4 million retirees, with that number expected to grow by 670,000 in the next five years⁵. Australia is also one of the wealthiest nations globally⁶, 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 protection⁸. 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.

Joint working groups between Generation Life and BlackRock are already active, with new retirement income solutions expected to be launched over the coming year.

1. Australian Bureau of Statistics – Life Expectancy 2021 to 2023
2. Australian Prudential Regulation Authority – Quarterly Superannuation Industry Publication as at March 2024.
3. Australian Prudential Regulation Authority – APRA releases superannuation statistics as at December 2024.
4. Investment Magazine - Super assets hit $4 trillion as systemic risks loom.
5. Actuaries Institute - Retirement Matters
6. UBS Global Wealth Report 2024
7. KMPG - The great wealth transfer begins as Gen X overtake Boomers for housing and shares
8. APRA - Annual Superannuation Bulletin June 2022, Table 8.

Disclaimer

This media release has been prepared by Generation Development Group Limited ABN 90 087 334 370 (GDG). The information in this media release is for information purposes only and does not constitute an offer of, or a recommendation to buy, securities or financial products in any jurisdiction.  It contains summary information which is of a general nature and does not purport to be complete nor does it contain all information which a prospective investor may require in evaluating a possible investment in GDG. Investments carry risk. GDG does not accept responsibility for any errors, omissions, or negligence. Statements that are non-factual in nature, including projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions, all of which are subject to change. Past performance is not an indicator of future performance.