Lifetime income products

Redefining retirement income

Your clients may want different things from retirement but share a common need: income. Challenger’s innovative lifetime income products are designed for today’s retirees.

A powerful investment for a resilient retirement portfolio

With guaranteed regular income payable for life - regardless of how long your clients live - Challenger’s lifetime income options help to manage longevity risk in a way many other investments can’t.

Keeping up with inflation

Inflation in Australia and around the world is hitting new generational highs. The impact of inflation is countered for some by an increase in wages. However, for retirees who are no longer earning a wage, a different approach maybe needed.

Challenger lifetime annuities can be linked to yearly CPI inflation changes, helping your clients to afford tomorrow what they can afford today.

Guaranteed regular income payable for life

Provide your clients with guaranteed regular income payments for life to help them meet their specific goals.

Income certainty	Inflation protection	Market-linked	RBA cash rate
Clients can choose fixed payments, so you and your clients don’t need to worry about the performance of investment markets or movements in the cash rate.	To help protect against inflation risk, payments can be fully or partially indexed to CPI.	Payments can be linked to investment markets to combine the benefits of monthly income for life with exposure to the potential for market gains while still accepting downside risk.	Clients can choose to have payments linked to the RBA cash rate.

Challenger lifetime annuities have no ongoing product fees and therefore (now or in the future) may result in considerable savings over the duration of your client’s retirement.

Add value for your retiree clients today while protecting tomorrow

Challenger’s lifetime income products provide you with the opportunity to support your clients to fully enjoy their retirement now and in the future. Research shows Australian retirees potentially won’t get to fully benefit from their lifetime of super savings because they are unsure about how much they can spend.

A Challenger annuity can help to solve this problem – providing clients with the ability to spend with confidence knowing the regular payments from their annuity are guaranteed to be paid for life.

Flexible features designed for today's retirees

As Australia’s largest annuity provider, Challenger has the experience and expertise to deliver the features your clients are looking for.

Regular income that never runs out - guaranteed to be paid for life.
There’s no product fees (now or in the future); all costs are incorporated when we set your client’s starting payment.
A guaranteed death benefit is payable for the duration of your client’s life expectancy with the death benefit equal to 100% of the amount invested for the first half of life expectancy. We also don’t reduce the death benefit for any income that has already been paid to your client.
Provides an immediate Age Pension boost if your client is an asset tested part pensioner, because only 60% of the amount invested counts towards the relevant Centrelink/DVA test.
Your client can choose to have payments fixed, or linked to changes in the CPI, RBA cash rate or investment markets.
There’s the flexibility to cancel the investment at any time during your client’s life expectancy (rounded down to a whole year), so they have access to a lump sum if they ever need it. The maximum withdrawal value starts at 100% of the amount invested and steadily reduces to nil.
Your client has estate planning control because a valid beneficiary nomination is binding on us. This means the death benefit is not part of your client’s Estate and will not be delayed by probate.
Regular income is tax-free if your client uses their super to invest. If they invest with other retirement savings, only part of their income is taxable.

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Payment solutions

Liquid Lifetime (Immediate payments)

Choose this option if your client wants income certainty.

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Liquid Lifetime (Deferred payments)

Choose this option if your client wants income certainty, but they do not want payments to start immediately.

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Liquid Lifetime (Market-linked payments)

Choose this option if your client wants their payments linked to changes in investment markets.

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Important notes: Age Pension benefits described above will not apply to all individuals. Age Pension outcomes depend on an individual (or couple’s) personal circumstances and may change over time. While lifetime income streams may immediately benefit some Age Pension eligible retirees who are assessed under the assets test, in later years, if assessed under the income test, any ongoing Age Pension benefits may be reduced. For Liquid Lifetime (Market-linked payments), only the first year’s monthly income amount is guaranteed. After the first year, monthly payments will move up or down annually adjusting to the changes in your client’s chosen market-linked indexation payment option. In periods of strong market performance, any Age Pension benefits may reduce to reflect the higher income received.

For Liquid Lifetime (Market-linked payments), only the first year’s monthly income amount is guaranteed. After the first year, monthly payments will move up or down annually adjusting to the changes in your clients’ chosen market-linked indexation payment options. In periods of strong market performance, any Age Pension benefits of your clients may reduce to reflect the higher income received.