The risk that you may voluntarily withdraw your funds early and incur a penalty. If you die before the end of the fixed term, your estate may receive less money than it would have if the annuity had been held for the full term. You can nominate a single beneficiary to continue to receive the regular payments until the end of the fixed term.

The risk that a change in Government policies and laws in the future may require us to make changes to the product or its terms and conditions.

There is a risk that the real value of your regular payments may reduce over time as a result of the inflation. To help manage this risk, where you have asked to have the full invested amount returned to you during the fixed term, we offer the option of indexing your regular payments each year in line with changes in the Consumer Price Index (CPI) or by a fixed whole percentage of up to 5%.

This is the risk that we become unable to meet our commitments to you. However, we are subject to detailed legislative and regulatory requirements designed to ensure that this does not occur. Challenger Life is regulated under the Life Act and the prudential standards made under it, which prescribe minimum capital and solvency requirements for Challenger Life as well as for the annuity business it writes. Challenger is regulated by the Australian Prudential Regulation Authority (APRA) who actively supervises Challenger’s compliance with these requirements, which are designed to ensure that we are able to meet our obligations to investors. For example, Challenger Life is required to hold at least enough capital to withstand a one in 200-year investment market shock event. APRA can require us at any time to change how we invest or tell us to invest more capital into the fund. Even so, unforeseen, and extreme circumstances that might impact our ability to make payments to you can never be completely ruled out.

^*Rates may vary. Annual income payment with capital returned at end of term. Issued by Challenger Life Company Limited ABN 44 072 486 938.

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How a fixed term annuity works

Fixed Term Rates

Rates are updated every Monday. The rates displayed are current and subject to change. Longer terms are available. For a tailored payment quotation, apply now, contact your financial adviser or call us on 13 35 66.

Investment amount

Income payment frequency

Investment term1 year

Earning rate

Annual income payment-

Investment term2 years

Earning rate

Annual income payment-

Investment term3 years

Earning rate

Annual income payment-

Investment term4 years

Earning rate

Annual income payment-

Investment term5 years

Earning rate

Annual income payment-

The rate for a Challenger term annuity is fixed for the term of your investment. Current annual payments for every $100,000 you invest in the Challenger term annuity are illustrated above. Choose from a term of one year up to 50 years^*, with a minimum investment of $10,000. Annualised payments are not available for 1 year terms

^*If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select - it cannot be greater than the number of whole years until you turn age 100.

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Fixed term annuity options

If you’re not sure which options are best for you, we recommend you discuss it with your financial adviser who will be able to help.

1. Choose how much you want to invest

You can choose to use your personal or super savings to invest a minimum of $10,000.

2. Choose your term

Choose a term from 1 to 50 years.¹

¹If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select – it can’t be greater than the number of whole years until you turn age 100.

3. Choose how often you receive payments

Match the frequency of your payments to suit your income needs. You can decide to receive your payments monthly, quarterly, half-yearly or for terms longer than one year, yearly. If you’re using your super money to invest, your regular payments are tax-free if you’re aged 60 years and over.

4. Choose if you want your income payments to be indexed

Your income payments won’t change unless you choose the indexation option. Payments can increase annually in line with increases in the Consumer Price Index (CPI) or by a fixed percentage of up to 5%. This option is only available for terms of at least two years where you have chosen to have all of your capital returned to you as part of your payments (also known as RCV 0 - see below for more information). More information on the indexation options is available in the 'Will my regular payment amount change over time' section of the PDS.

5. Choose when you want your lump sum investment repaid

Choose how we pay you back the original amount you invested. It can all be repaid at the end of your chosen fixed term, or all or part of it can be repaid with your regular payments. The choice is yours.

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Here are a few examples using a five-year fixed term of $100,000 with annual payments

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Features

Fixed return

Know what you’re earning. Enjoy the certainty that your income won’t be impacted by the performance of the share market.

Choice of terms and payments

Select from a range of terms and income payment options all delivering guaranteed payments for the term you choose.

No fees

There are no product fees or charges payable to Challenger.

Access your money early if you need it

If your circumstances change, you can access a lump sum amount early. Bear in mind that a Challenger fixed term annuity is designed to be held until the end of the term, so a penalty will apply if you decide to withdraw early.

Nominate beneficiaries

Keep control over your estate planning by nominating one or more beneficiaries.

Competitive rates

View our competitive rates below.

View rates

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Risks of investing

All investments carry some risk. We've listed the key risks that you should consider when deciding whether a fixed term annuity is right for you.

Withdrawal risk

Regulatory risk

Inflation risk

Counterparty risk

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Subscribe to Horizons newsletter

Horizons is our newsletter designed for retirees or those planning for their retirement. Subscribe now to receive our latest information to help you live and age well in retirement in Australia.

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Additional reading

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What’s the difference between a term deposit and a term annuity?

View key differences between a fixed term annuity, a bank term deposit and other products/investments.

Download PDF

Retiree Asking questions and receiving help

Frequently asked questions

Find answers for questions we commonly get asked about our fixed term annuity.

Read FAQs

Is a fixed term annuity right for you?

Here are a few points you could consider to determine whether a fixed term annuity is right for you.

Download PDF

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Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670 is the issuer of Challenger Annuities

Useful documents and links

Below we have provided information that you should consider before you make a decision to purchase a financial product. We also recommend that you speak to your financial adviser.

Guaranteed Annuity (Fixed Term) Product Disclosure Statement (PDS)

Guaranteed Annuity (Fixed Term) Target Market Determination (TMD)

Fixed term annuities client product flyer

Is a fixed term annuity right for you?

Archived Target Market Determinations

Guaranteed Annuity (Fixed Term) Additional Information Guide

Things to consider before withdrawing

Letter of compliance

*Rates may vary. Annual income payment with capital returned at end of term. Issued by Challenger Life Company Limited ABN 44 072 486 938.

Table of Contents

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How a fixed term annuity works

Fixed Term Rates

*If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select - it cannot be greater than the number of whole years until you turn age 100.

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Fixed term annuity options

1. Choose how much you want to invest

2. Choose your term

1If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select – it can’t be greater than the number of whole years until you turn age 100.

3. Choose how often you receive payments

4. Choose if you want your income payments to be indexed

5. Choose when you want your lump sum investment repaid

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Here are a few examples using a five-year fixed term of $100,000 with annual payments

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Features

Fixed return

Choice of terms and payments

No fees

Access your money early if you need it

Nominate beneficiaries

Competitive rates

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Risks of investing

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Subscribe to Horizons newsletter

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Additional reading

What’s the difference between a term deposit and a term annuity?

Frequently asked questions

Is a fixed term annuity right for you?

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Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670 is the issuer of Challenger Annuities

Useful documents and links

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Table of Contents

Fixed Term Rates

*If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select - it cannot be greater than the number of whole years until you turn age 100.

1. Choose how much you want to invest

2. Choose your term

1If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select – it can’t be greater than the number of whole years until you turn age 100.

3. Choose how often you receive payments

4. Choose if you want your income payments to be indexed

5. Choose when you want your lump sum investment repaid

Here are a few examples using a five-year fixed term of $100,000 with annual payments

Features

Fixed return

Choice of terms and payments

No fees

Access your money early if you need it

Nominate beneficiaries

Competitive rates

Subscribe to Horizons newsletter

What’s the difference between a term deposit and a term annuity?

Frequently asked questions

Is a fixed term annuity right for you?

^*Rates may vary. Annual income payment with capital returned at end of term. Issued by Challenger Life Company Limited ABN 44 072 486 938.

^*If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select - it cannot be greater than the number of whole years until you turn age 100.

¹If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select – it can’t be greater than the number of whole years until you turn age 100.

^*If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select - it cannot be greater than the number of whole years until you turn age 100.

¹If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select – it can’t be greater than the number of whole years until you turn age 100.