TAL has agreed to purchase a 15.1% equity interest in investment firm Challenger Limited, with the transaction subject to regulatory clearance.
The acquisition supports TAL’s strategy to expand its presence in the retirement sector, which is expected to grow in line with Australia’s ageing population.
TAL CEO Fiona Macgregor said the investment aligns with the insurer’s long-term focus on addressing the financial needs of retirees.
“There is an important community need to address with 5 million Australians currently in or preparing for retirement. Our minority investment in Challenger is an extension of our commitment to supporting Australians’ financial needs during retirement,” she said.
The move reflects a wider trend in the market, with employee expectations shifting around retirement and benefits.
According to research from Aon plc’s 2025 Human Capital Employee Sentiment Study, retirement planning now ranks among the top five employee benefits in demand.
The survey, which captured views from more than 500 workers in Australia and over 9,000 globally, also revealed that more than two-thirds of Australian respondents are considering a job change in the next year. Additionally, half of those surveyed questioned the fairness of their current compensation, and 22% said they felt undervalued by their employers.
At the same time, the insurance industry is contending with a deepening talent shortage. AXA XL’s country head for Australia, Catherine Carlyon, pointed to the sector’s demographic challenges, with a majority of workers over the age of 45 and a limited pipeline of younger talent entering the industry.
Current data shows that only 18% of insurance professionals are under the age of 34, compared to 40% across the broader national workforce. Projections indicate that by 2030, nearly one-third of current insurance employees will have reached or passed retirement age.
Carlyon said the sector faces an uphill task in attracting new entrants, noting that younger professionals often perceive the industry as inflexible or lacking in innovation.
In response to long-term labour challenges, the Insurance Council of Australia (ICA) outlined a strategy to develop a more sustainable workforce. Its Insurance Industry Talent Roadmap, released in September 2024, offers a six-year blueprint aimed at both recruiting new talent and retaining experienced professionals.
Amid these workforce issues, concerns around retirement readiness are also growing. A study commissioned by the Council of Australian Life Insurers (CALI) found a widespread lack of confidence among Australians about funding their retirement.
Half of the survey participants expected to draw on the government age pension, while one-third were uncertain about their financial plans. Only 15% said they did not anticipate needing pension support.
CALI has called for enhanced access to basic financial guidance, citing the federal government’s “Delivering Better Financial Outcomes” initiative. The package is designed to make financial advice more accessible and transparent, particularly for those approaching retirement.
The Australian government has also introduced reforms aimed at improving the retirement journey. In November 2024, a set of policy changes was announced to enhance retirement outcomes and transparency. These include increasing consumer access to digital planning tools via the Moneysmart platform, updating rules around income streams to encourage the development of innovative retirement products, and establishing voluntary guidelines for new product design.
In a related development, CALI confirmed in January that it would work alongside the government to roll out improved service standards for insurance within superannuation accounts. The standards are intended to address concerns about claims management and communication with policyholders.
