Challenger’s market-linked lifetime annuity provides a monthly income for your client’s lifetime (and their spouse’s life if they are included as part of the investment) that will change annually in line with the return of the chosen market-linked index. Similar to how you construct a client’s investment portfolio within their account-based pension, you now have the option of including a lifetime income solution within your client’s retirement portfolio that aligns to their risk profile and retirement goals.
There is a choice of five indexation payment options across both defensive and growth asset allocations, and you have the flexibility to switch the index option annually at no cost.*
Your client's payments will be less predictable year to year because payments will be indexed up and down based on the performance of their chosen indexation payment option. They will receive payments for life that start a month after investment.
- Your client can use their super or personal savings to invest.
- Monthly payments for life (and their spouse’s life if they choose).
- Payments start a month after investment.
- Payments move up and down annually with changes in the market-linked indexation payment option chosen by your client – only the first year's monthly income amount is guaranteed. In periods of strong market performance, payments can be higher than the starting payment. In periods of poor performance, payments can index down below the starting payment.
- Your client can switch their chosen market-linked indexation payment option at no cost every year on their policy anniversary date.
- Monthly payments are tax-free if your client uses their super to invest.
- Up to 100% of your client's investment is repaid to their nominated beneficiaries or estate if they die within the withdrawal period**.
- It has a withdrawal value for a period based on your client's life expectancy – just in case their circumstances change and they no longer require lifetime income**.
- A potential boost to your clients' Age Pension entitlements under Age Pension rules.
- No investment management fees and therefore may result in considerable savings over the duration of your client's retirement.
For more information about this option, read the PDS.