This case study relates to a hypothetical individual, Jane and is provided for illustrative purposes only. This case study is not intended to reflect any particular person’s circumstances. It is based on information that is current as at 2 October 2024 unless otherwise specified and is provided by Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670, the issuer of Challenger CarePlus Annuity and Challenger CarePlus Insurance which together are referred to as Challenger CarePlus (CarePlus). The information is general information only and has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, each person should, before acting on any such information, consider its appropriateness, having regard to their objectives, financial situation and needs. Each person should obtain the Challenger CarePlus Target Market Determination (TMD) and Product Disclosure Statement (PDS) and consider the information in the TMD and PDS before making any decision about investing in CarePlus. A copy of the TMD and PDS can be obtained from your financial adviser, our Investor Services team on 13 35 66, or at challenger.com.au. Challenger Group companies and their employees do not receive any specific remuneration for any advice provided to you. However, financial advisers may receive fees if they provide advice to you or arrange for you to invest with us. Some or all of Challenger Group companies and their directors may benefit from fees and other benefits received by another group company. The references to guaranteed payments in this publication refer to the payments Challenger Life promises to pay under the relevant policy documents. Neither Challenger Limited nor any other company in the Challenger group guarantees the performance of Challenger Life’s obligations or assumes any obligations in respect of products issued by Challenger Life. Challenger Life is not licensed or authorised to provide tax or social security advice. We strongly recommend that you seek professional financial product, taxation and social security advice for your individual circumstances. 

This case study relates to a hypothetical couple, and is provided for illustrative purposes only. This case study is not intended to reflect any particular person’s circumstances. It is based on information that is current as at 20 September 2024 unless otherwise specified and is provided by Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670, the issuer of the Challenger Guaranteed Annuity (Liquid Lifetime) and the Challenger Guaranteed Annuity (collectively referred to as the Annuities), and Challenger Retirement and Investment Services Limited ABN 80 115 534 453, AFSL 295642 (together referred to as Challenger). It is intended to be general information only and not financial product advice and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should, therefore, consider its appropriateness having regard to these matters and the information in the Target Market Determination (TMD) and Product Disclosure Statement (PDS) for the Annuity before deciding whether to acquire or continue to hold an Annuity. A copy of the applicable TMD and PDS is available at challenger.com.au or by contacting our Investor Services Team on 13 35 66. This case study includes statements of opinion, forward looking statements, forecasts or predictions based on current expectations about future events and results. Actual results may be materially different from those shown. This is because outcomes reflect the assumptions made and may be affected by known or unknown risks and uncertainties that are not able to be presently identified. Neither Challenger nor its related bodies corporate nor any of their employees receive any specific remuneration for any advice provided in respect of the Annuities. However, financial advisers may receive fees if they provide advice to you or arrange for a person to invest in an Annuity. Some or all of Challenger group companies and their directors may benefit from fees and other benefits received by another group company. Any taxation, Centrelink and/ or Department of Veterans’ Affairs illustrations are based on current law at the time of writing which may change at a future date. Challenger is not licensed or authorised to provide tax or social security advice. We strongly recommend that prospective investors seek financial product advice as well as professional taxation and social security advice in relation to their individual circumstances. 

Source: Challenger Retirement Illustrator, Reference number: RIC240922000093.

This case study relates to a hypothetical individual, Julie, and is provided for illustrative purposes only. This case study is not intended to reflect any particular person’s circumstances. It is based on information that is current as at 20 March 2024 unless otherwise specified and is provided by Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670, the issuer of the Challenger Guaranteed Annuity (Liquid Lifetime) and the Challenger Guaranteed Annuity (collectively referred to as the Annuities), and Challenger Retirement and Investment Services Limited ABN 80 115 534 453, AFSL 295642 (together referred to as Challenger). It is intended to be general information only and not financial product advice and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should, therefore, consider its appropriateness having regard to these matters and the information in the Target Market Determination (TMD) and Product Disclosure Statement (PDS) for the Annuity before deciding whether to acquire or continue to hold an Annuity. A copy of the applicable TMD and PDS is available at challenger.com.au or by contacting our Investor Services Team on 13 35 66. This case study includes statements of opinion, forward looking statements, forecasts or predictions based on current expectations about future events and results. Actual results may be materially different from those shown. This is because outcomes reflect the assumptions made and may be affected by known or unknown risks and uncertainties that are not able to be presently identified. Neither Challenger nor its related bodies corporate nor any of their employees receive any specific remuneration for any advice provided in respect of the Annuities. However, financial advisers may receive fees if they provide advice to you or arrange for a person to invest in an Annuity. Some or all of Challenger group companies and their directors may benefit from fees and other benefits received by another group company. Any taxation, Centrelink and/ or Department of Veterans’ Affairs illustrations are based on current law at the time of writing which may change at a future date. Challenger is not licensed or authorised to provide tax or social security advice. We strongly recommend that prospective investors seek financial product advice as well as professional taxation and social security advice in relation to their individual circumstances. 

Considerations

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.

The calculations above are from Challenger’s Retirement Illustrator tool as at 27 September 2024 (accessible to financial advisers only).

The Retirement Illustrator contains the following assumptions:

Government Age Pension: The Government Age Pension amounts illustrated are based on current law. For the purpose of rates and threshold indexation CPI and AWOTE are assumed to be the same. Any future changes to legislation will alter the Age Pension amounts projected. It is important to note that the Government Age Pension amounts projected are illustrations only and are not a guarantee that a person will be entitled to the Government Age Pension. Eligibility for Government Age Pension entitlements will vary depending on personal circumstances, including the future value of investments and changes to marital status. To check eligibility for the Government Age Pension, go to servicesaustralia.gov.au.

Continuance of life: The Illustrator assumes the life/lives being illustrated do not die before the end of the illustration period. Where death occurs before the end of the illustration period the results will be different.

Taxation: The Illustrator does not calculate any tax payable on the projected regular retirement income or capital gains. Generally, once a person turns age 60 and retires, any income received from superannuation investments is tax-free. However, other investments not purchased with money rolled over within the superannuation system may be subject to tax. Where the annuity is purchased with non-superannuation money, tax may be payable on any lump sum withdrawal amount.

Amounts are shown in today’s dollars: Results are shown in ‘today’s dollars’. This means illustrations take into account the impact of inflation between the time of the illustration and the future date, in order to show all figures in today’s purchasing power.

Assumed rates of return: The illustrator assumes account-based pension growth assets return 8% p.a. and defensive assets, 4.5% p.a. before management fees of 0.80% and 0.40% respectively. In addition, platform fees are assumed to be 0.40% and cash deposits return 4.5% p.a. Lifetime annuities is assumed to form part of defensive assets and to maintain an overall asset allocation of 50/50 growth.

Source: Challenger Retirement Illustrator, Reference number: RIC240927000025.

This case study relates to a hypothetical couple, and is provided for illustrative purposes only. This case study is not intended to reflect any particular person’s circumstances. It is based on information that is current as at 20 September 2024 unless otherwise specified and is provided by Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670, the issuer of the Challenger Guaranteed Annuity (Liquid Lifetime) and the Challenger Guaranteed Annuity (collectively referred to as the Annuities), and Challenger Retirement and Investment Services Limited ABN 80 115 534 453, AFSL 295642 (together referred to as Challenger). It is intended to be general information only and not financial product advice and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should, therefore, consider its appropriateness having regard to these matters and the information in the Target Market Determination (TMD) and Product Disclosure Statement (PDS) for the Annuity before deciding whether to acquire or continue to hold an Annuity. A copy of the applicable TMD and PDS is available at challenger.com.au or by contacting our Investor Services Team on 13 35 66. This case study includes statements of opinion, forward looking statements, forecasts or predictions based on current expectations about future events and results. Actual results may be materially different from those shown. This is because outcomes reflect the assumptions made and may be affected by known or unknown risks and uncertainties that are not able to be presently identified. Neither Challenger nor its related bodies corporate nor any of their employees receive any specific remuneration for any advice provided in respect of the Annuities. However, financial advisers may receive fees if they provide advice to you or arrange for a person to invest in an Annuity. Some or all of Challenger group companies and their directors may benefit from fees and other benefits received by another group company. Any taxation, Centrelink and/ or Department of Veterans’ Affairs illustrations are based on current law at the time of writing which may change at a future date. Challenger is not licensed or authorised to provide tax or social security advice. We strongly recommend that prospective investors seek financial product advice as well as professional taxation and social security advice in relation to their individual circumstances. 
 

Considerations

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.

The calculations above are from Challenger’s Retirement Illustrator tool as at 22 September 2024 (accessible to financial advisers only).

The Retirement Illustrator contains the following assumptions:

Government Age Pension: The Government Age Pension amounts illustrated are based on current law. For the purpose of rates and threshold indexation CPI and AWOTE are assumed to be the same. Any future changes to legislation will alter the Age Pension amounts projected. It is important to note that the Government Age Pension amounts projected are illustrations only and are not a guarantee that a person will be entitled to the Government Age Pension. Eligibility for Government Age Pension entitlements will vary depending on personal circumstances, including the future value of investments and changes to marital status. To check eligibility for the Government Age Pension, go to servicesaustralia.gov.au.

Continuance of life: The Illustrator assumes the life/lives being illustrated do not die before the end of the illustration period. Where death occurs before the end of the illustration period the results will be different.

Taxation: The Illustrator does not calculate any tax payable on the projected regular retirement income or capital gains. Generally, once a person turns age 60 and retires, any income received from superannuation investments is tax-free. However, other investments not purchased with money rolled over within the superannuation system may be subject to tax. Where the annuity is purchased with non-superannuation money, tax may be payable on any lump sum withdrawal amount.

Amounts are shown in today’s dollars: Results are shown in ‘today’s dollars’. This means illustrations take into account the impact of inflation between the time of the illustration and the future date, in order to show all figures in today’s purchasing power.

Assumed rates of return: The illustrator assumes Account-based pension growth assets return 8% p.a. and defensive assets, 4.5% p.a. before management fees of 0.80% and 0.40% respectively. In addition, platform fees are assumed to be 0.40% and cash deposits return 4.5% p.a. Lifetime annuities is assumed to form part of defensive assets and to maintain an overall asset allocation of 50/50 growth/defensive (including the allocation to the defensive lifetime annuity), the asset allocation of the account-based pensions has been set accordingly.

Source: Challenger Retirement Illustrator, Reference number: RIC240922000110.