Lifetime annuities

Lifetime annuities

Provides a guaranteed income for life, regardless of how long you live or how share markets perform.

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

About the Challenger Guaranteed Annuity (Liquid Lifetime)

The Challenger Guaranteed Annuity (Liquid Lifetime) is a lifetime annuity that pays a regular income for life in return for a lump sum investment. The regular income we agree to pay you is guaranteed for your lifetime, regardless of how long you live or how investment markets perform – giving you peace of mind in retirement.

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

  • guaranteed monthly payments for life (and your spouse’s life if you choose)
  • payments that start immediately or on a future date you choose
  • payments that keep pace with inflation* or are linked to the RBA cash rate
  • flexibility to withdraw and be paid a lump sum if your circumstances change within the withdrawal period*
  • a known estate value via a guaranteed death benefit*

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

Effective 1 September 2021, the Regular Income (15-year withdrawal guarantee) option closed to new investors.

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.