What is an annuity?
How do they work?
You invest some of your savings with Challenger and we pay you guaranteed regular payments for either a fixed period or for the rest of your life depending on the type of annuity you choose.
If you choose a Challenger lifetime annuity, we will continue to provide your payments for as long as you live.
Annuities are protected from share market and interest rate movements
Challenger annuities give you an additional layer of protection in retirement by providing guaranteed income payments. They act as a safety net helping ensure that you will receive income for life, or for a fixed term of your choice. As the rate of return is fixed at the outset, an annuity is not affected by how investment markets perform or interest rate movements.
Complements your retirement income
You can choose inflation linked income to help protect your lifestyle
Inflation measures the change in the cost of living over time. With level income, your retirement lifestyle could become unaffordable. Payments from Challenger annuities can be linked to yearly changes to inflation, helping you to continue to afford tomorrow what you can afford today.
With the security of an annuity helping you to pay for your essential expenses, you have more flexibility with how you manage your other investments for other discretionary spending, like on holidays and entertainment.
More information about annuities
See other features of annuities: Learn more