Types of annuities
We understand that your retirement goals and lifestyle needs are unique. That's why we offer a choice of annuities to suit you. You can use part of your super or your personal savings to invest with a minimum investment amount of $10,000.
Anyone aged 18 years and older can invest in an annuity, although if you are using your super to invest, you must be aged 60
1 or over and have unrestricted access to your super.
Lifetime annuities
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Fixed term annuities
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Challenger Lifetime Annuity (Liquid Lifetime)
We all want different things from retirement but share a common need: income. Challenger lifetime income products deliver guaranteed regular income payable for life, regardless of how long you live.
With a Challenger lifetime annuity as part of your retirement plan you can build a more resilient investment portfolio because the payments from your annuity are guaranteed to be payable for your lifetime. Liquid Lifetime options canprovide:
- guaranteed regular payments for life (and your spouse’s life if you choose)
- payments that start immediately or, for some payment options, on a future date you choose (if using super savings to invest)
- payments that are fixed, that keep pace with inflation, or are linked to changes in the RBA cash rate or investment markets
- a long period where you can access a lump sum if your circumstances change2
- a long death benefit period where a lump sum is payable to your estate or nominated beneficiaries2
- regular income is tax-free if you use your super to invest. If you invest with other non-superannuation personal savings, only part of your income is taxable
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Challenger Guaranteed Annuity (Fixed Term)
A secure investment that provides a guaranteed, regular income for a fixed term you choose.
- the choice of a fixed term between one year and 50 years
- the choice of monthly, quarterly, half-yearly or yearly payments
- your investment repaid at the end of the fixed term unless you choose to have some or all of it repaid throughout the fixed term as part of your regular payments
- if you are using some of your super to invest in a Challenger term annuity, your regular payments are tax-free. If you invest with non-super money the tax treatment will be different
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1. Generally, to have unrestricted access to your super between the ages of 60 and 65 you must have ceased work. There are some limited circumstances where you may be eligible to invest with super money if you are under age 60, for example if your super fund has assessed you as totally and permanently disabled.
2. You can ask us to remove these features in return for higher 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.
Why choose an annuity?
Retirement is a life-changing event. As you adjust to your new lifestyle, you’ll need to think differently about your finances. Moving from earning an income to drawing on your retirement savings and investments can be a big shift mentally. And it can bring up financial concerns you haven’t thought too much about before, such as:
- the risk of outliving your retirement savings and becoming completely reliant on the Age Pension
- the impact of market conditions on the value of your investments during your retirement
- the risk that over time inflation will increase the cost of living. This means the income received from your investments may also need to increase in line with inflation to maintain your standard of living.
Annuities can help to address these concerns so you can relax and enjoy your retirement.
