Challenger offers two types of fixed term annuities:

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

  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. This page provides information on the options and application instruction for Guaranteed Annuity (Fixed Term).

What is a fixed term annuity?

Fixed term annuity options

Determining which options are right for you can be complex so you may want to discuss it with your financial adviser. 

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Choose how much you want to invest 

You can choose to use your personal or super savings to invest a minimum investment of $10,000.

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Choose your term

Choose from a term of one year up to 50 years 1.

1 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.

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Choose how often you receive payments

Match the frequency of your payments to suit your income needs. You can decide whether to receive your payments monthly, quarterly, half-yearly or for terms longer than one year, yearly. If you are using your super money to invest, your regular payments are tax-free if you are aged 60 years and over.

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Choose your required level of indexation

Your payments will not change unless you choose to have them increased annually in line with increases in the Consumer Price Index (CPI) or by a fixed percentage rate. You can only choose to have your regular payments increased annually in line with increases in the CPI, or by a fixed whole percentage rate (of up to 5%) if you have chosen a term of at least two years and have also chosen to have all your capital returned to you as part of your regular payments (RCV0).

More information on the above indexation options is available in in ”Will my payments change over time” section of the PDS.

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Choose when you want your lump sum investment repaid

Choose how we pay you back the original amount invested. It can all be repaid at the end of your chosen fixed term, or all or part of it can be repaid with your regular payments. The choice is yours. Either way if held until the end of the term, you’ll get 100% of your investment back.

Here are a few examples using a five-year fixed term for $100,000 with annual payments

1. Receive your original investment amount of $100,000 at the end of your term.

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2. Receive 50% of your original investment as part of your regular payments and the other 50% at the end of your term.

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3. Receive all of your original investment spread evenly through your investment term and no payment at the end of your term.

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Rates

The below rates are indicative and for illustrative purposes only. These rates are updated during business hours on a Monday. For a tailored payment quotation contact your financial adviser or call us on 13 35 66.

Current from 20 May 2024 to 26 May 2024

Term Annual income payment with capital returned at end of term
Years Rate Annual payment amount
2 5.05% $5,050
3 5.15% $5,150
4 5.15% $5,150
5 5.15% $5,150

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 50 years*, with a minimum investment of $10,000. Annualised payments are not available for 1 year terms

Longer terms are available.

*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.

Apply now

We offer three application options:

You can take advantage of our fast online application if you are choosing to apply for a Guaranteed Annuity (Fixed Term Direct).

This option may suit you if:

  • You are aged 18 years or over
  • You are applying as an individual or jointly with another person
  • You are applying for a term of one year up to 5 years
  • You are happy for your payments to remain fixed for the term
  • You are investing $10,000 or more
  • You are happy to have all capital returned to you at the end of the term (rather than being paid to you in instalments during the term)

Please read and consider the PDS and the TMD before applying.

Please follow these steps to obtain a Guaranteed Annuity (Fixed Term):

 

  1. Read the PDS, and TMD and Additional Information Guide

  2. Complete and Sign application form: select the appropriate form

    Form for individuals

    Form for companies, trusts and SMSF

  3. Call us to request a payment quote on 13 35 66. Quotes are generally valid for 14 days

  4. Return the following to us via post to Challenger, Reply Paid 3698, SYDNEY NSW 2001

    1. Completed signed application form

    2. Valid quote (or quote ID)

    3. Certified copies of identification (see application form for details of acceptable forms of ID)