Market linked annuity

Liquid Lifetime (Market-linked payments)

Challenger's Liquid Lifetime (Market-linked payments) can help improve your financial wellbeing by combining the benefits of income for life with the potential for growth.

Challenger’s market-linked lifetime annuities provide you (and your spouse if you choose) with monthly income for life that has the potential to increase over time. However, payments are less predictable because they move up or down based on the performance of the chosen market index.

There is a choice of five indexation payment options across both defensive and growth asset allocations, and you have the flexibility to switch the index option annually at no cost.* 

Your payments will be less predictable year to year compared to CPI indexed payments because payments will be indexed up and down based on the performance of your chosen indexation payment option. You will receive payments for life that start a month after investment.


  • You can use your super or personal savings to invest.
  • Monthly payments for life (and your spouse’s life if you choose).
  • Payments start a month after investment.
  • Payments move up and down annually with changes in the market-linked indexation payment option chosen by your client – only the first year's monthly income amount is guaranteed. In periods of strong market performance, payments can be higher than the starting payment. In periods of poor performance, payments can index down below the starting payment.
  • You can switch your indexation payment option at no cost every year on your policy anniversary date.
  • Monthly payments are tax-free if you use your super to invest.
  • Up to 100% of your investment is repaid to your nominated beneficiaries or estate if you die within the withdrawal period**.
  • It has a withdrawal value for a period based on your life expectancy – just in case your circumstances change and you no longer require lifetime income**.
  • A potential boost to your Age Pension entitlements under Age Pension rules.
  • No investment management fees and therefore may result in considerable savings over the duration of your retirement. 

For more information about this option, read the PDS, or talk to your financial adviser about whether this is the option for you.

* Before each investment anniversary, you can choose to switch your indexation payment option. If you choose to switch, the change will be effective from the next anniversary day. A request to switch must be received by Challenger at least 14 days prior to the next anniversary day. If you choose to switch your option, the first payment to be indexed by the new payment option will be the 13th monthly payment after the change.
** You can ask us to change these features in return for different 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. 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.
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