Fixed term annuities
A fixed term annuity provides regular payments for a chosen term, in exchange for an initial capital investment. Our fixed term annuities offer a number of options that you can tailor to meet your needs. You can:
- Choose how often you receive your regular payments (monthly, quarterly, half-yearly or yearly)
- Choose the investment term
- Choose to have the option to increase your regular payments annually in line with changes to the consumer price index or a fixed whole percentage rate
Challenger offers two types of fixed term annuities.
Provides regular payments for a term of your choice from 1-50 years
Provides regular payments and is asset test exempt for investors who need to roll over from a self-managed super fund with an existing exemption
Transfer Balance Cap
From 1 July 2017, there is a $1.6 million limit on how much of your superannuation can be transferred to an income stream in retirement phase known as the 'transfer balance cap'. This means the capital investment amount in a Challenger fixed term annuity purchased with superannuation money from 1 July 2017 will count towards your transfer balance cap when it commences.
The value of an existing Challenger fixed term annuity purchased with superannuation money as at 30 June 2017 will also count towards your transfer balance cap from 1 July 2017.
For further information on the transfer balance cap please refer to the ATO website or speak to your financial adviser regarding your individual circumstances. If you require an estimated value of an existing superannuation fixed term annuity, please call Investor Services on 133 566.
For more information, speak to your financial adviser, order or download a product disclosure statement or call our Investor Services team on 13 35 66.