Market linked annuity

Liquid Lifetime (Market-linked payments)

Challenger's Liquid Lifetime (Market-linked payments) combine the benefits of a monthly income for life and exposure to investment markets, while offering flexibility to switch their indexation payment option annually.

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.

* Before each investment anniversary, your client can choose to switch their indexation payment option. If they choose to switch, the change will be effective from the next
anniversary day. A request to switch must be received by Challenger at least 14 days prior to the next anniversary day. If your client chooses to switch their option, the first payment to be indexed by the new payment option will be the 13th monthly payment after the change.
** You can ask us to change these features in return for different starting payments. But the choice is totally yours.
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 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.