Lifetime annuities

Lifetime annuities

Challenger lifetime annuities will pay you a regular income for life, regardless of how long you live, helping to give peace of mind in retirement.

Challenger lifetime annuities complement other investments and sources of income, such as a pension from your super and the Age Pension. They provide a lifetime income which can be used as the foundation of your retirement portfolio.

About the Challenger Lifetime Annuity (Liquid Lifetime)

Liquid Lifetime is a lifetime annuity that pays a regular income for life in return for a lump sum investment. It gives you an additional layer of protection in retirement and can act as a safety net giving you income for life, regardless of how long you live.

You can use your super or personal savings to invest with a minimum investment amount of $10,000. Liquid Lifetime options can provide:

  • regular monthly payments for life (and your spouse’s life if you choose);
  • payments that start immediately, or 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 change*;
  • a long death benefit period where a lump sum is payable to your estate or nominated beneficiaries*; and
  • a potential boost to your Age Pension entitlements under Age Pension rules.

* You can ask us to change these features in return for different starting payments. But the choice is totally yours.

Liquid Lifetime provides different monthly payment solutions to suit your financial circumstances and needs. For income certainty, you can choose CPI indexed or fixed payments. Alternatively, you can choose to have payments linked to changes in the RBA cash rate or investment markets.

Lifetime annuity payment rates

See the payment rates currently available.

View our rates
Useful links

Product options

Immediate payments
Liquid Lifetime (Immediate payments)

Choose this option if you want income certainty.

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Deferred payments
Liquid Lifetime (Deferred payments)

Choose this option if you want income certainty, but you do not want payments to start immediately.

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Market linked annuity
Liquid Lifetime (Market-linked payments)

Choose this option if you want your payments linked to changes in investment markets.

Learn more
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 chosen market-linked indexation payment option. In periods of strong market performance, any Age Pension benefits may reduce to reflect the higher income received. Consult your financial adviser about potential impacts on your personal circumstances and whether a lifetime income is right for you.


Frequently asked questions

Challenger lifetime annuities have a long death benefit period where a lump sum is payable to your estate or nominated beneficiaries. The death benefit is up to 100% of the amount invested. The maximum amount that could be received by your estate or beneficiaries depends on the time which has passed since you invested in the annuity up to the date of your death. You have the flexibility to remove this feature in return for higher regular payments.

This gives you certainty and control over your estate planning outcomes. See the relevant Product Disclosure Statement for more information.


While Challenger lifetime annuities are designed to be held for life, there is a long withdrawal period based on your life expectancy where you can ask to be repaid a lump sum amount if your circumstances change.

See the Product Disclosure Statement for more information.

Annuities are designed to complement your existing retirement income. Generally, you would invest only a portion of your super or retirement savings in order to receive regular income for life. You can invest as little as $10,000.

Inflation measures the change in the cost of living over time. Payments from Challenger annuities can be linked to yearly inflation changes or linked to changes in the RBA cash rate, helping you to continue to afford tomorrow what you can afford today.

A lifetime annuity (Flexible Income option) may immediately increase your Age Pension because only a portion of your investment is counted under the assets test. Any benefit will depend on whether you are assessed under the assets or income test.

For market-linked lifetime annuities, monthly payments will move up or down annually adjusting to the changes in your chosen market-linked indexation payment option. In periods of strong market performance, any Age Pension benefits may reduce to reflect the higher income received.

Speak with your financial adviser before making any financial decisions.

For annuities purchased with superannuation money, income payments and lump sum withdrawals are generally tax-free if you are age 60 or over.

For annuities purchased with your retirement savings (outside super), income payments and lump sum withdrawals may have some taxable income. Challenger provides an annual PAYG statement which has all the details you need to complete your tax return.

For tax treatment of death benefits see the FAQ ‘Are annuities taxable to beneficiaries?’.

For annuities purchased with superannuation money, if a death benefit is paid to a dependant (as defined in law), for example a spouse or child under 18, it will be paid tax-free. However, if paid to a non-dependant, for example adult children, they may have some tax payable.

Find out more about tax on super death benefits.

For annuities purchased with money from your savings outside superannuation , death benefits may have some tax payable. Challenger provides a PAYG statement which has all the details you need to do your tax return as a beneficiary.