With a Challenger Guaranteed Annuity (Fixed Term), your client will receive guaranteed regular payments over a term of their choice which can complement, other investments and sources of income, including an account-based pension, a lifetime annuity, or the age pension.
Rates
The below rates are indicative and for illustrative purposes only. These rates are updated during business hours on a Monday.
Current from 22 April 2024 to 28 April 2024
| Term | Annual income payment with capital returned at end of term | |
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| Years | Rate | Annual payment amount |
| 2 | 5.00% | $5,000 |
| 3 | 5.05% | $5,050 |
| 4 | 5.05% | $5,050 |
| 5 | 5.10% | $5,100 |
The rate for a Challenger Guaranteed Annuity (Fixed Term) is fixed for the term of your clients' investment. Current annual payments for every $100,000 your clients invest in the Challenger Guaranteed Annuity (Fixed Term) are illustrated above. Choose from a term of one year up to 50 years1, with a minimum investment of $10,000. Annualised payments are not available for one year terms.
To obtain a quote for longer terms, different indexation options or residual capital value, visit AdviserOnline or call us on 13 35 66.
1For investments made with superannuation money and where the residual capital value is selected is zero, super rules restrict the maximum term that can be selected to the number of whole years until the investor turns age 100.
What is a fixed term annuity?
Features
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Fixed returnGive your clients the confidence that their income won't be impacted by market movements.
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Choice of terms & paymentsSelect the payment frequency and term that best suits your clients' income needs, all delivering guaranteed payments.
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Nominate beneficiariesSupports your clients' estate planning by allowing them to nominate one or more beneficiaries.
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Competitive ratesCheck out our rates here. |
No feesThere are no fees or charges payable to us. |
Access to money if circumstances changeIf your clients' circumstances change, they can access a lump sum amount early. Bear in mind that a Challenger Guaranteed Annuity (Fixed Term) is designed to be held until the end of the term, so there is a penalty if they decide to withdraw early. |
- Operates in a similar way to a term deposit available from a bank2.
- Your clients can use super or personal savings to invest.
- Investment is repaid at the end of the fixed term unless your clients choose to have some or all of it repaid throughout the fixed term as part of their regular payments.
- Payments are tax free if your clients use super to invest.
2Annuities are not covered by the Australian Government’s Financial Claims Scheme, which protects certain types of deposits in the event that a bank, building society or credit union fails. There may be additional withdrawal penalties that apply to an annuity.
Challenger Guaranteed Annuity (Fixed Term)
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Choose the investment amountYour clients can choose to use personal or super savings to invest a minimum investment of $10,000 |
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Choose your termWe offer terms of one year up to 50 years3, giving your clients plenty of choice. 3 Super rules restrict the maximum investment term if the client is investing Super money. The term cannot be be greater than the number of whole years before the client turns 100. |
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Choose the payment frequencyMatch the frequency of payments to suit your client’s income needs. Your client can receive payments monthly, quarterly, half-yearly or for terms longer than one year, yearly. For clients eligible to invest using super money to invest, payments are tax-free. |
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Choose your required level of indexationIndexation in line with CPI, or for a fixed percentage of up to 5%, is an option for clients investing for a term of 2 years or more who have also chosen to have all their capital returned to them as part of their regular payments (RCV0). More information on the above indexation options is available in ”Will my payments change over time” section of the PDS. |
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Choose when you want your lump sum investment repaidChoose how the original amount invested is paid back to your client. It can all be repaid at the end of the chosen fixed term, or all or part of it can be repaid with the clients' regular payments. Either way if held until the end of the term, you’ll get 100% of your investment back. |
Get a tailored quote
Visit our Adviser Online portal to generate a Fixed Term Annuity quote with our eQuote tool; you just need to register or contact a us on 13 35 66 to find out more information.
Articles
How do we fund our promises?
A Challenger annuity gives you guaranteed regular income payable for life, or for a chosen investment term. But how do we cover our promises made to your client?
How do fixed term annuities compare?
We have outlined some of the key differences between a Challenger term annuity, a bank term deposit and other products/investments.
