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