Guaranteed allocated pension

Guaranteed Allocated Pension

A simple and cost-effective way to convert your superannuation savings into secure and regular payments when you are transitioning to, or in, retirement.

Whether you’re transitioning to retirement, or already in it, Challenger has a secure, simple and cost-effective solution.

About Challenger Guaranteed Allocated Pension (Challenger Pension)

The Challenger Pension is an account-based pension that allows a simple and flexible way of receiving regular payments as part of your retirement strategy. It can provide you with a guaranteed rate of return for your chosen term, regardless of how investment markets perform.

The Challenger Pension offers two investment options:

  • Guaranteed Fixed Rate - The fixed rate option offers a guaranteed rate of return on your investment for terms of one to ten years. The earning rate is fixed at the time of your investment providing market and capital protection.
  • Guaranteed Cash - The cash option offers a guaranteed earning rate that is set at the start of the week rate and remains fixed for that week, giving you the flexibility to switch all or part of your investment to a fixed rate option at any time.

Who is eligible to commence a Challenger Pension?

Anyone over the age of 18 who is eligible to commence a superannuation pension (typically transitioning to retirement or at retirement). It can be commenced using superannuation contributions and rollovers of existing superannuation benefits. The minimum investment amount is $10,000.

Benefits at a glance

Market protection - The fixed rate option offers a guaranteed rate of return on your investment, regardless of how markets perform providing you with certainty from this part of your retirement savings. By contrast, the value of many other superannuation products fluctuates with investment markets, making it more difficult for you to plan for your retirement.

Low risk investment - The Challenger Pension has a ‘very low’ standard risk measure profile, for both investment options. This is based on industry guidance, to enable you to compare different superannuation investment options.

No fees to Challenger - We do not receive any fees from your account or from your investment return.

As with all investments, the Challenger Pension carries some risks. These risks and how they are managed are set out in the PDS. We recommend you go through them with your financial adviser before deciding to invest.