Annuities
Challenger Life Company Limited is Australia's leading provider of annuities, serving a client base of approximately 60,000 and issuing more annuities each month than any other life insurance company.
In 2009 it won Annuity Provider of the Year*.
A Challenger annuity is a simple financial product.
Investors receive an attractive, guaranteed income stream for a defined period of their choosing, from 1 to 30 years. Income payments can be made monthly, quarterly or yearly, with the option of inflation protection. Investors can receive their capital back in a lump sum at the end of the term or progressively with their interest over the term.
While an annuity is structured to be held to maturity, it also provides for early withdrawals where an investor's circumstances have changed.
A Challenger annuity carries no management or other product fees. Challenger invests the premium paid by the investor, as well as shareholders' equity and other capital, and retains any residual return over and above the returns it has promised to pay.
Annuitants bear no investment risk at all which means that regardless of how investment markets perform, Challenger's annuities will reliably deliver on the capital and income promises made to our investors.
The inclusion of an annuity in a retirement income portfolio helps protect super from losses and management fees. With the help of a good financial adviser, a portfolio built with a combination of annuities and growth assets can also help manage longevity risk; that is, the risk that you will outlive your retirement savings.
The returns paid by our annuities, and 100% of an investor's capital, are guaranteed by Challenger Life Company Limited, which is regulated by the Australian Prudential Regulation Authority.
Challenger's annuities are accessible through an individual policy tailored under the Guaranteed Income Plan, or via the Guaranteed Income Fund which invests into underlying annuities and is available on platforms.
Find out more about Challenger's annuity products below:
Product no longer available to new investors
- Challenger Income Choice Annuities
Annuities' role in taking the risk out of retirement
The ageing of Australia's population presents one of the greatest public policy challenges of the next twenty years or more. Challenger has undertaken substantial independent research into the important role lifetime annuities can play in reducing market and longevity risk in retirement. This research has been published in the following submissions to the Henry Review:
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06 Mar 2009
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07 Sep 2009
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12 Nov 2009
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For more information contact your financial planner or call our Investor Services team on 13 35 66.
* Plan for Life Actuaries and Researchers
