Term annuities

Term annuities

Challenger Guaranteed Annuity (Fixed Term)

A Challenger term annuity is a secure investment that provides a guaranteed, regular income for a fixed term you choose. 

Earn a competitive rate

The rate for a Challenger term annuity is fixed for the term of your investment. 

Current annual payments for every $100,000 you invest in the Challenger term annuity are illustrated below. Choose from a term of one year up to 50 years*, with a minimum investment of $10,000. 

Current from 29 June 2020 to 05 July 2020

Term Annual income payment with capital returned at end of term
Years Rate Annual payment amount
2 1.50% $1,500
3 1.60% $1,600
5 1.80% $1,800

With a Challenger term annuity, you can:

  • Enjoy the certainty that your income won’t be impacted by the performance of the share market.
  • Count on regular, known income with guaranteed payments for the term you choose.
  • Invest with the peace of mind that you’ll get your money back at the end of the term or through your regular payments, if that’s what you choose.
  • Keep control over your estate planning by nominating one or more beneficiaries. 

Is a term annuity right for me?

A Challenger term annuity might suit you if:

A Challenger term annuity might not suit you if:

You are looking for a low risk investment that is not linked to the performance of the share market.  You have a higher risk appetite and you’re willing to take on more risk for potentially higher returns.

You are looking for a fixed income investment.

You want to invest in the share market or property markets for potential higher long term returns.
You are looking for certainty that you won’t lose money on your investment and you will receive your original investment amount back.  You are willing to take the risk that you may not get your full investment amount back at the end of the investment term.
You are looking for regular, guaranteed income to be paid either monthly, quarterly, half- yearly or yearly.
You don’t need the certainty of known, regular income payments or a known return on investment.
You are happy to lock in a fixed term in exchange for a potentially higher rate.  You will likely need access to your money before the end of the nominated term.
 
Flexibility and features that give you greater control of your investment. With a Challenger term annuity, you can:

Have your investment amount repaid when it suits you

Choose to receive some (or all) of your original investment returned to you as part your regular payments, or at the end of the term. Your regular payments can be paid monthly, quarterly, half-yearly or yearly.

Access your money early, if you need to

If your circumstances change, you can access a lump sum amount. Bear in mind that a Challenger term annuity is designed to be held until the end of the term, so there may be a penalty if you decide to withdraw early.

Enjoy tax-free income for the full term if you invest with super

If you are using your super money to invest in a Challenger term annuity and you are age 60 and over, your regular payments are tax-free. If you invest with non-super money the tax treatment will be different.

Invest for a term that suits you

Choose from a term of one year up to 50 years*, with a minimum investment of $10,000. 

 
* If you use your super to invest and ask for all of your initial investment to be repaid as part of your regular payments, super rules restrict the maximum term you can select - it cannot be greater than the number of whole years until you turn age 100.