The new deal is part of Suncorp’s broader strategy for developing its financial services marketplace, the bank said.

Suncorp chief officer and managing director, Michael Cameron, said the partnership will see customers provided with expanded financial management options as they look towards retirement.

“We continue to operate in a low-rate, low-growth environment and this type of product is designed to provide customers with a way to deliver a reliable income stream once they have stopped working,” Mr Cameron said.

Meanwhile, Challenger’s chief officer and managing director, Brian Benari, said there is an increasing need for financial stability and security as people approach retirement age.

“Each day, 700 Australians reach retirement age and the number of over-65s is expected to grow to more than seven million over the next 40 years,” Mr Benari said.

“As customers move towards retirement, they need the kind of stable income and long-term financial security that guaranteed annuities provide.”