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Introducing Australia's first guaranteed floating rate lifetime annuity

For the first time in Australia annuity investors will be able to participate fully in future interest rate movements.

Introducing the new Challenger Liquid Lifetime RBA cash linked option. This innovative option allows retiree clients to receive higher payments as the cash rate increases, enabling them to look forward with confidence by having regular income, while also not missing out when rates start rising again.  

What does it do?

Liquid Lifetime RBA cash linked allows retirees to link their lifetime annuity payments to movements in the RBA cash rate (whether it be an increase or decrease). 

No other lifetime retirement income stream has delivered this combination of income certainty with the benefit of participating in future interest rate changes, until now. By investing today retirees will receive the immediate benefits of security and peace of mind that lifetime annuities bring, as well as the comfort of knowing that their regular lifetime payments will retain full exposure to future interest rate increases. This is a smart new defensive solution for providing income certainty given current global market volatility. If you would like to run through a case study or discuss how this option can benefit your clients you can register for a 1:1 session with a Challenger BDM here

How does it work?

Below is an illustration of what the annual payment for a 65-year old male who invested $100,000 (rates effective 01 August 2020) could be under different Reserve Bank cash rates. Note there is no limit to payment amounts – for example if the RBA cash rate was 8% then that would be used to calculate payments.

RBA cash linked payments graph

What benefits can a Challenger Guaranteed Annuity provide?

An investment in a Challenger Guaranteed Annuity (Liquid Lifetime) can provide a range of benefits that enable retirees to look forward with confidence, including:

  • guaranteed income for life – irrespective of how long your client lives or how investment markets perform;
  •  access to capital over a long period;
  • guaranteed death benefits;
  • flexibility to withdraw and be paid a lump sum if your clients’ circumstances change within the withdrawal period; and,
  • an immediate increase in Age Pension for certain assets tested retirees.

And now the ability to link clients’ annuity payments to the RBA cash rate and participate in future interest rate changes.


Register for a 1:1 session with a Challenger BDM to run through a case study or discuss how this payment option could benefit your clients