By investing a portion of their savings with Challenger, your client will receive regular payments over a term of their choice. Fixed term annuities can complement their other investments and sources of income, including an account-based pension, a lifetime annuity, or the Age Pension.
About the Challenger Guaranteed Annuity
The Challenger Guaranteed Annuity (Annuity) offers a number of options that you can tailor to meet your clients’ needs. They can:
- Choose an investment term between one and 50 years (minimum investment $10,000).
- Choose to have their initial investment repaid to them at the end of the term, or have some or all of it repaid throughout the term as part of their regular payments.
- Choose how their regular payments are made to them (monthly, quarterly, half-yearly, or yearly).
Challenger term annuities can help give your clients greater cash flow certainty as the rate of return they will receive is determined when they invest and does not change, regardless of how investment markets perform.
Change to maximum upfront adviser service fee. Challenger Life recently reduced the maximum upfront service fee that can be authorised for us to pay to you for facilitating the issue of the Challenger Guaranteed Annuity on behalf of Challenger Life. Please refer to the Update to information in the Challenger Guaranteed Annuity Product Disclosure Statement for updated investment terms.
Transfer Balance Cap. From 1 July 2017, there is a $1.6 million limit on how much of your superannuation can be transferred to an income stream in retirement phase known as the 'transfer balance cap'. This means the capital investment amount in the Challenger Guaranteed Annuity purchased with superannuation money from 1 July 2017 will count towards your transfer balance cap when it commences.
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