A secure investment offered by a life insurance company that operates in a similar way to a term deposit.

Payments are guaranteed by Challenger regardless of how investment markets perform.

† Annuities are not covered by the Australian Government’s  Financial Claims Scheme, which protects certain types of deposits in the event that a bank, building society or credit union fails.
* Rates may vary. Annual income payment with capital returned at end of term. Issued by Challenger Life Company Limited ABN 44 072 486 938

Rates

These rates are updated during business hours on a Monday. 

For a tailored payment quotation, apply now, contact your financial adviser or call us in 13 35 66.

Current from 19 February 2024 to 25 February 2024

Term Annual income payment with capital returned at end of term
Years Rate Annual payment amount
2 4.95% $4,950
3 5.00% $5,000
4 5.00% $5,000
5 5.05% $5,050

The above rates are indicative and for illustrative purposes only.

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 above. Choose from a term of one year up to 5 years, with a minimum investment of $10,000. Annualised payments are not available for one year terms.

Longer terms are available. Find out more.

Features

  • Fixed return - know what you’re earning
  • Enjoy the certainty that your income won't be impacted by the performance of the share market.

  • Choice of terms & payments
  • Select from a range of terms and income payment options all delivering guaranteed payments for the term you choose.

  • Nominate beneficiaries
  • Keep control over your estate planning by nominating one or more beneficiaries.

  • Competitive rates
  • Check out our rates here.

  • No fees

    There are no fees or charges payable to us.

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

What are the risks of investing?

All investments carry some risk. Listed below are key risks that you should take into account when deciding whether a Challenger fixed term annuity is right for you.

This is the risk that if you voluntarily withdraw or die before the end of the fixed term, you may receive back less money than you invested and less money than you would have received had you held the annuity for the full investment term. The withdrawal value of the annuity will vary over time because it depends on changing factors, including how long you’ve held the annuity for and prevailing market rates at that time. 

Any lump sum payable on death during the investment term is calculated similarly to the withdrawal value for voluntary withdrawal, and so this risk also applies to withdrawal on death.

To protect against this risk of early death and receiving back less money than you invested, you can nominate a single beneficiary to continue receiving the regular payments until the end of the fixed term. If you have chosen to have the investment amount returned to you at the end of the fixed term, then the beneficiary will also be paid that amount at the end of the fixed term.

Government policies and laws may change in the future, which may impact your personal circumstances. In such circumstances, we may be required to change the terms and conditions of your fixed term annuity if changes to tax or other laws impact your investment or, if necessary, to comply with any law, ruling or determination of any relevant government authority.

We will generally notify you in advance of any material change to your policy and in any event as soon as practicable after the change. Where a change is not materially adverse to you, we will give you notice of the change no later than 12 months after the change has occurred.

The Fixed Term Direct annuity offers fixed payments that remain the same throughout the term, with no increases to account for inflation. 

If you are concerned about this we have other options available with our full suite Fixed Term annuity. Where you have asked to have the full invested amount returned to you throughout the fixed term, we offer the option of indexing your regular payments each year in line with changes in the Consumer Price Index (CPI) or by a fixed percentage you choose.

This is the risk that we become unable to meet our commitments to you. However, we are subject to detailed legislative and regulatory requirements designed to ensure that this does not occur.

Challenger Life is regulated under the Life Act and the prudential standards made under it, which prescribe minimum capital and solvency requirements for Challenger Life as well as for the annuity business it writes. APRA actively supervises Challenger’s compliance with these requirements, which are designed to ensure that we are able to meet our obligations to investors. For example, Challenger Life is required to hold at least enough capital to withstand a one in 200-year investment market shock event. APRA can require us at any time to change how we invest or tell us to invest more capital into the fund.

Even so, unforeseen and extreme circumstances that might impact our ability to make payments to you can never be completely ruled out.

Choice of options

Challenger offers two types of fixed term annuities:

  1. Guaranteed Annuity (Fixed Term Direct)
    This is a streamlined fixed term annuity offer which offers a simple online application, and has a smaller set of options.

     

  2. Guaranteed Annuity (Fixed Term) 
    The fixed term annuity is available to suit a wider set of customers and offers a broader set of options. Applications for the fixed term annuity need to be submitted via an offline application form. Read more.

Apply online now

If you would like to invest at least $10,000 of non-super money for a term of up to 5 years you can use our online application.

Please read and consider the Product Disclosure Statement and the Target Market Determination before applying.

 
Explore more options

We have other options available such as terms greater than 5 years, the ability to use superannuation monies or you want to choose when your lump sum investment is repaid.

Please read and consider the Product Disclosure Statement and the Target Market Determination before applying.


Read more