Guaranteed annuity complying

Guaranteed Annuity (Complying)

The Challenger Guaranteed Annuity (Complying) is designed to accept money rolled over from a self-managed super fund or a regulated super fund or sub fund that is closing and currently paying an asset test exempt income stream so that the asset test exemption can be maintained.

The Challenger Guaranteed Annuity (Complying) creates a regular cash flow for a known investment term, regardless of how investment markets perform whilst allowing them to maintain asset test exemption on the funds rolled over.

About the Challenger Guaranteed Annuity (Complying)

The Challenger Guaranteed Annuity (Complying) (the Annuity) is available for clients that wish to roll over their asset test exempt lifetime, life expectancy or term allocated (market linked) income stream from their self-managed fund or a regulated super fund or sub fund that is closing. The Annuity is designed to meet the requirements of a 100% or 50% asset test exempt income stream where certain conditions are met.

The Annuity offers a number of options that you can tailor to meet your client’s needs. They can:

  • Invest as little as $10,000 (AUD)
  • Choose how their regular payments are made to them (monthly, quarterly, half-yearly, or yearly)
  • Choose their investment term (subject to requirements under Social Security law)
  • Choose to have the regular payments linked to yearly changes to inflation, helping your client to continue to afford tomorrow what they can afford today
  • Choose to have payments continue to your client’s partner if they die during the chosen term, or they can choose to have a lump sum paid to their beneficiaries

The rate of return your client will receive is established at the time they apply for the Annuity and will depend on the product options they choose and prevailing interest rates.

Challenger guarantees that it will not change the rate for the term of the Annuity.