About annuities

About annuities

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An annuity is a simple, secure financial product which provides you with a series of regular payments in return for a lump-sum investment. The rate of return is fixed at the outset, and is not affected by share market or interest rate movements. You can choose to have your capital returned at the end of the agreed term or gradually during the term of the annuity as part of the regular payments.


  • Deliver regular, dependable cash flows
  • Offer flexible terms and payment options
  • May offer indexation to help protect against inflation
  • Provide tax-free income if you're over 60 and buy them with superannuation money

Annuities are designed to be held to term. If you would like to cancel your annuity, in most cases you will receive a return of your investment but you may receive back less than you invested originally and less than you would have received had you held the annuity for its agreed term.

More information

Speak to your financial adviser or contact Challenger Investor Services on 13 35 66.