A guaranteed death benefit is payable for the duration of your clients’ life expectancy, up to a maximum of 27 years. The death benefit equals 100% of the amount invested for the first half of the death benefit period (rounded down to a whole year) and then progressively reduces from approximately 50% down to nil over the remaining years. Importantly we don’t reduce the death benefit for any income that has already been paid to your client.

See the relevant Product Disclosure Statement for more information.

There’s flexibility to cancel the investment at any time during your clients’ life expectancy, up to a maximum of 27 years (rounded down to a whole year), so they have access to a lump sum if they ever need it. The maximum withdrawal value starts at 100% of the amount invested and steadily reduces to nil. The actual withdrawal value we pay is impacted by movements in interest rates and an allowance for the cost to us of breaking the investment. That’s why it’s only possible to determine the withdrawal value at the time of withdrawal.

See the relevant Product Disclosure Statement for more information. 

No. Challenger annuities are designed to help provide a foundation of guaranteed regular income for your clients’ retirement portfolio. Investing some of their retirement savings or super in a Challenger lifetime annuity will give them a monthly income for life.

They can invest as little as $10,000. 

Payments from Challenger lifetime annuities can be linked to yearly inflation changes, helping your clients to continue to afford tomorrow what they can afford today.

A Challenger lifetime annuity may immediately increase your clients’ Age Pension because only a portion of their investment is counted under the assets test. Any benefit will depend on whether they are assessed under the assets or income test.

For market-linked lifetime annuities, monthly payments will move up or down annually adjusting to the changes in your clients’ chosen market-linked indexation payment option. In periods of strong market performance, any Age Pension benefits may reduce to reflect the higher income received.

For annuities purchased with superannuation money, income payments and lump sum withdrawals are generally tax-free if your client is age 60 or over.

For annuities purchased with retirement savings (outside super), income payments and lump sum withdrawals may have some taxable income. Challenger provides an annual PAYG statement which has all the details your client will need to complete their tax return.

For information on tax treatment of death benefits see the FAQ ‘Are annuities taxable to beneficiaries?’. 

For annuities purchased with superannuation money, if a death benefit is paid to a dependant (as defined in law) for example a spouse or child under 18, it will be paid tax-free. However, if paid to a non-dependant (for example adult children) they may have some tax to pay.

Find out more about tax on super death benefits.  

For annuities purchased with money from savings, outside superannuation, death benefits may have some tax payable. Challenger provides a PAYG statement which has all the details your client will need to do their tax return as a beneficiary.