Benefits of annuities
||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 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.
Anyone aged 18 years and older can invest in an annuity, although if you are using your super to invest, you must be aged 601
or over and have unrestricted access to your super.
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)2
- flexibility to withdraw and be paid a lump sum if circumstances change within the withdrawal period3
- known estate value via guaranteed death benefit3
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
1. Generally, to have unrestricted access to your super between the ages of 60 and 65 you must have ceased work. There are some limited circumstances where you may be eligible to invest with super money if you are under age 60, for example if your super fund has assessed you as totally and permanently disabled.
2. 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.
3. You can ask us to remove these features in return for higher starting payments. But the choice is totally yours.
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