Term annuities

Term annuities

Provides a guaranteed regular income for a fixed term you choose regardless of how investment markets perform with flexible capital return options at maturity.

By investing a portion of your savings with Challenger, you will receive regular payments over a term of your choice. Term annuities can complement your other sources of income and investments, including an account-based pension, a lifetime annuity, or the Age Pension.

About the Challenger Guaranteed Annuity

You can invest in the Challenger Guaranteed Annuity (Annuity) with money rolled over within the superannuation system, or non-superannuation money. The Annuity is designed to give you complete control over your income by letting you choose:

  • An investment term between one and 50 years (minimum investment $10,000).
  • To have your initial investment repaid to you at the end of the term, or have some or all of it repaid throughout the term as part of your regular payments.
  • How your regular payments are made to you (monthly, quarterly, half-yearly, or yearly).

Challenger term annuities can help give you peace of mind around your retirement income as the rate of return you will receive is determined when you invest and does not change, regardless of how investment markets perform.

Benefits at a glance

A secure investment with competitive guaranteed returns - Challenger term annuities offer competitive guaranteed rates payable for a fixed term, regardless of how markets perform. 

Protect your income and capital against share market volatility - Challenger term annuities give you an additional layer of protection in retirement by providing guaranteed income payments. They act as a safety net helping to ensure you will receive income for your chosen term, regardless of how investment markets perform. 

No fees to Challenger - There are no fees or charges payable to us. Our costs are taken into account when we determine the regular payments you will receive during the term. 

As with all investments, our Term Annuity carries some risks. These risks and how they are managed are set out in the Product Disclosure Statement. We recommend you go through them with your financial adviser before deciding to invest. 

Visit the rates page to see how this compares to other investments. 

Important notices

Change to maximum upfront adviser service fee. Challenger Life recently reduced the maximum upfront service fee that you can authorise us to pay to your financial adviser for facilitating the issue of the Challenger Guaranteed Annuity on behalf of Challenger Life. Please refer to the Update to information in the Challenger Guaranteed Annuity Product Disclosure Statement for updated investment terms.

Transfer Balance Cap. From 1 July 2017, there is a $1.6 million limit on how much of your superannuation can be transferred to an income stream in retirement phase known as the 'transfer balance cap'. This means the capital investment amount in the Challenger Guaranteed Annuity purchased with superannuation money from 1 July 2017 will count towards your transfer balance cap when it commences.

Information provided on the Challenger Websites is intended for Australian residents only and may not comply with the laws of other jurisdictions outside Australia. It is of a general nature and does not take into account an investor's individual circumstances, financial situation or needs or particular investment objectives. It is not intended to be investment advice nor a recommendation or statement of opinion about any particular financial product or class of financial products. As a result, it should not be relied upon in acquiring any financial product or service and is provided in good faith and derived from sources believed to be accurate and current at the date of publication. See Conditions of use for more information.
What is an annuity