What is an annuity

What is an annuity?

Annuities provide a secure guaranteed income, for your lifetime or for a fixed term of your choice. They can be used as the foundation of your retirement plan.

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.

Complements your retirement income

Challenger annuities complement other retirement investments and sources of income, such as your super and the Age Pension. They provide a secure income, either for your lifetime or for a fixed term you choose, regardless of how share markets perform.

Helping you to spend confidently in retirement

Challenger annuities give you peace of mind by providing you with guaranteed income. Annuities can be used to help cover your living costs and maintain your standard of living while in retirement.

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.

Features of an annuity

Make your retirement income last

Challenger annuities give you guaranteed income, regardless of how share markets perform.

Inflation linked income to help protect your lifestyle

A Challenger annuity gives you guaranteed income that can keep pace with inflation.

Flexibility to withdraw if your circumstances change

While Challenger annuities are designed to be held for the full investment term, there may be flexibility to access a lump sum if your circumstances change.

A lump sum benefit payable if you die early

Challenger lifetime annuities can have a long death benefit period where a lump sum is payable to your estate or nominated beneficiaries.

You may be eligible for an immediate increase in your Age Pension

With a lifetime annuity (Flexible Income option) only a proportion of your investment is counted under the assets test.

The Challenger guarantee

Challenger annuities are guaranteed by Challenger Life, a Life Company regulated by the Australian Prudential Regulation Authority (APRA).


Challenger products

Challenger provides a range of product solutions aimed at helping you during retirement. These solutions are based around our market-leading annuities that provide regular payments for the chosen investment term, regardless of how markets perform.