Benefits of annuities
| Regular income |
Protection against key retirement risks |
Helping you to spend confidently in retirement |
They provide a regular income, either for your lifetime or for a fixed term of your choice.
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They give you an additional layer of protection for life, or for a chosen investment term. They can act as a safety net. |
Annuities can be used to help cover your living costs and maintain your standard of living while in retirement.
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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 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 60
1 or over and have unrestricted access to your super.
Lifetime annuities
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Fixed term annuities
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Challenger Lifetime Annuity (Liquid Lifetime)
Challenger lifetime annuities give you an additional layer of protection in retirement and can act as a safety net giving you income for life, regardless of how long you live. Liquid Lifetime options can provide:
- regular monthly payments for life (and your spouse’s life if you choose)
- payments that start immediately or, for some payment options, on a future date you choose (if using super savings to invest)
- payments that are fixed, that keep pace with inflation, or are linked to changes in the RBA cash rate or investment markets
- a long period where you can access a lump sum if your circumstances change2
- a long death benefit period where a lump sum is payable to your estate or nominated beneficiaries2
- tax free payments if you use your super to invest and you are aged 60 or over
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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
- tax free payments if you use your super to invest and you are aged 60 or over
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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 ask us to remove these features in return for higher starting payments. But the choice is totally yours.
Important notes: Age Pension benefits described above will not apply to all individuals. Age Pension outcomes depend on an individual (or couple’s) personal circumstances and may change over time. While lifetime income streams may immediately benefit some Age Pension eligible retirees who are assessed under the assets test, in later years, if assessed under the income test, any ongoing Age Pension benefits may be reduced.
Next page > The retirement income quiz
