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 annuities 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.

Why choose an annuity?

Retirement is a life-changing event. As you adjust to your new lifestyle, you’ll need to think differently about your finances. Moving from earning an income to drawing on your retirement savings and investments can be a big shift mentally. And it can bring up financial concerns you haven’t thought too much about before, such as:

the risk of outliving your retirement savings and becoming completely reliant on the Age Pension
the impact of market conditions on the value of your investments during your retirement
the risk that over time inflation will increase the cost of living. This means the income received from your investments may also need to increase in line with inflation to maintain your standard of living.

Annuities can help to address these concerns so you can relax and enjoy your retirement.

Benefits of annuities
Secure income	Protection against key retirement risks	Helping you to spend confidently in retirement
They provide a secure income, either for your lifetime or for a fixed term of your choice.	They can act as a safety net, helping to ensure your essential income is protected from key risks in retirement.	They provide cash flow certainty that can help you maintain your standard of living, providing you peace of mind.

Is an annuity right for me?

When determining whether an annuity is right for you, it may help to focus on what your retirement goals are in more concrete terms. For example, working out how much your basic expenses are, how much you will need for a more comfortable lifestyle, if the Age Pension will be enough or whether you need an additional source of income to meet these goals.

If you value the security of a guaranteed, regular income for a fixed term or for the rest of your life, then an annuity could be a suitable investment option for you. In all cases, we recommend you speak to a financial adviser.

Annuities for retirement

We (Challenger) understand that your retirement goals and lifestyle needs are unique. That's why we offer a choice of annuities to suit you. You can use part of your super or your personal savings to invest with a minimum investment amount of $10,000.

Lifetime annuities

Fixed term annuities

Challenger Guaranteed Annuity (Liquid Lifetime)

Gives you an additional layer of protection in retirement by providing guaranteed income payments for life, regardless of how long you live or how share markets perform. Here is what you will receive:

monthly payments for life (and your spouse’s life if you choose)
payments that start immediately or on a future date you choose (if using super savings to invest)
payments that keep pace with inflation (CPI-indexed payments)¹
flexibility to withdraw and be paid a lump sum if circumstances change within the withdrawal period²
known estate value via guaranteed death benefit²

Challenger Guaranteed Annuity (Fixed Term)

Provides a guaranteed regular income for a fixed term you choose regardless of how share markets perform with flexible capital return options at maturity. Here is what you will receive:

the choice of a fixed term between one year and 50 years
the choice of monthly, quarterly, half-yearly or yearly payments
your investment repaid at the end of the fixed term unless you choose to have some or all of it repaid throughout the fixed term as part of your regular payments

Learn more

1. You can choose to only partially index payments annually with movements in the CPI (called ‘partial CPI’) or not to index payments annually with movements in the CPI (called ‘no indexation’) in return for higher starting payments.
2. You can ask us to remove these features in return for higher starting payments. But the choice is totally yours.

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.

Lifetime annuities

Provides a guaranteed income for life, regardless of how long you live or how share markets perform.

Learn more

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.

Learn more

CarePlus

A specialist investment designed to help people moving into residential aged care. It provides guaranteed regular income for life, with a lump sum payable to your beneficiaries or estate upon death.

Learn more