A guaranteed death benefit is payable for the duration of your 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 we don’t reduce the death benefit for any income that has already been paid to you.

See the relevant Product Disclosure Statement for more information.

There’s flexibility to cancel the investment at any time during your life expectancy, up to a maximum of 27 years (rounded down to a whole year), so you have access to a lump sum if you need it. The maximum withdrawal value starts at 100% of the amount invested and steadily reduces to nil. The actual withdrawal value we pay you 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 retirement portfolio. Investing some of your retirement savings or super in a Challenger lifetime annuity will give you a monthly income for life.

You can invest as little as $10,000.

Inflation is a measure of the change in the cost of living over time. Payments from Challenger annuities can be linked to yearly inflation changes, helping you to continue to afford tomorrow what you can afford today.

A Challenger lifetime annuity may immediately increase your Age Pension because only a portion of your investment is counted under the assets test. Any benefit will depend on whether you 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 chosen market-linked indexation payment option. In periods of strong market performance, any Age Pension benefits may reduce to reflect the higher income received. Speak with your financial adviser before making any financial decisions.

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

For annuities purchased with your 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 you need to complete your tax return.

For 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 your savings, outside superannuation, death benefits may have some tax payable. Challenger provides a PAYG statement which has all the details you need to do your tax return as a beneficiary.

What do I need to do?

First, you should find out if there is an accommodation payment payable and determine what assets you can use to meet the cost.

How an adviser can help

Your financial adviser can help you determine how to pay for your accommodation. This may involve a lump sum payment, regular instalments or a combination of both.

Who else can help?

Services Australia assess your income and assets. Also, the  My Aged Care website has been established by the Australian Government to help you navigate the aged care system. 

What do I need to do?

Determine which ongoing fees apply to you. This could include the basic daily fee, a means-tested care fee and any extra service fee.

How an adviser can help

There are strategies to minimise the fees you pay. Keeping or selling your home often forms part of the strategy as does how you invest. A poorly executed plan can result in a lower Age Pension  and higher fees.

Who else can help?

The aged care facility and Centrelink can assist in determining your fees. 

What do I need to do?

Determine which ongoing fees apply to you. This could include the basic daily fee, a means-tested care fee and any extra service fee.

How an adviser can help

There are strategies to minimise the fees you pay. Keeping or selling your home often forms part of the strategy as does how you invest. A poorly executed plan can result in a lower Age Pension and higher fees.

Who else can help?

The aged care facility and Centrelink can assist in determining your fees.

What do I need to do?

Determine how the social security Income and Asset tests apply to you.

How an adviser can help

Your choice of investments may help you to access or retain benefits, including the Commonwealth Seniors Health Card. The decisions you make regarding keeping or selling your family home can also result in a lower Age Pension .

Who else can help?

Centrelink determines your eligibility for Government benefits.

What do I need to do?

Determine if your capital can be invested to provide enough cash flow to meet ongoing care costs.

How an adviser can help

Your financial adviser can assess your investment options and help you maximise your income. 

What do I need to do?

Identify which of your assets can be included in your estate and the best way to do so.

How an adviser can help

Your financial adviser can help identify what assets can be left to your estate.

Who else can help

Your lawyer can ensure you have a Will that reflects your wishes. 

What do I need to do?

Identify what tax offsets are available and which apply to you. You also need to be aware of any issues that may arise if you sell your home or change your investments.

Your adviser can help

An overall review of your situation will identify the various tax offsets that may be available to you, including the low income, seniors and net medical expense offsets.

A tax adviser can also flag issues concerning land tax and capital gains tax that may affect you. 

A Target Market Determination (TMD) is a document that describes who a product is designed to be appropriate for, how the product can be distributed, and when the TMD themselves should be reviewed. All of Challenger's retail products available for investment, except for closed retail products, will have an associated TMD. Like-for-like reinvestments and rollovers of our retail products aren’t subject to TMD requirements.

The Target Market Determination can be found here, along with the relevant Product Disclosure Statement for each retail product available to new investors.

Our Target Market Determination (TMD) outlines our intended customers for our products for whom the product is designed and appropriate (also known as the target market for the product). If you do not meet the target market outlined in the TMD, it is likely that the product would not be appropriate for you. Your financial adviser will consider with you whether you are within the target market for the product as outlined in the TMD. If you don’t have a financial adviser, you should consider whether you are within the target market described in the TMD along with the relevant Product Disclosure Statement (PDS), your objectives, financial situation and needs when determining whether a product is appropriate for you.

If you have questions regarding any of our products, or the TMD, please discuss this with your financial adviser or call us on 13 35 66 (Australia only) between 8.00am and 6.00pm (Sydney time) Monday to Friday. 

Our Target Market Determination (TMD) can help you decide if the product is appropriate. The TMD, along with the Product Disclosure Statement (PDS), your objectives, your financial situation and needs may help you determine whether a product is appropriate for you. A financial adviser can help you with this. You can obtain a copy of the relevant product’s TMD and PDS on our website. If you have questions regarding our products, please discuss this with your financial adviser, or call us on 13 35 66 (Australia only) between 8.00am and 6.00pm (Sydney time) Monday to Friday.

Our Target Market Determination (TMD) can help you decide if the product is appropriate. If you’re not in the target market, it is likely that the product is not appropriate for you. You may still wish to apply for the product after considering the target market described within the TMD. Our products are not restricted to customers who only fit the target market in the relevant TMD. You should however consider the Product Disclosure Statement, your objectives, your financial situation and needs before deciding to invest in an annuity. A financial adviser can help you decide. 

This will be different for each individual or couple. The Association of Superannuation Funds of Australia (ASFA) does provide a guide on how much super both single and couple retirees would need to achieve a comfortable lifestyle in retirement, assuming they draw down all of their capital and receive a part Age Pension. This is currently $595,000 for singles, and $690,000 for couples as at 2023.

Find out more about the ASFA retirement standards. 

This is personal tax advice and you should seek help from an accountant or tax specialist.

The tax-free threshold is $18,200 (as at date June 2024) however you may be eligible for tax offsets like the Senior Australian Pensioners Tax Offset (SAPTO) and the Low Income Tax Offset (LITO) to help you reduce your tax payable (if any), possibly to nil. Super income streams generally become tax-free when you turn 60, which can also help manage your taxable income.

Find out more about tax for seniors and retirees.

An account-based pension is an account where you invest your superannuation and which pays a regular income.
 

With an account-based pension you can generally choose from a range of investments and select the income you draw subject to minimum pension requirements. When the money in the account is exhausted, the income will cease. An account-based pension may also be referred to as an ‘allocated pension’. It's important to understand that an account-based pension is not a lifetime annuity, although they can be designed to produce fixed, regular payments. The difference between a lifetime annuity and an account-based pension is that annuities offer the option of continuing to pay these regular payment amounts for life, regardless of how long you live.

Account-based pensions could be linked to the share market which means that your investment would be linked to the performance of the underlying investments. This could impact the level of your savings, how long they’ll last for, and the income it produces to fund your retirement lifestyle.

You can access your super and start an account-based pension when you reach your preservation age and retire, which is between 55 and 60 depending on when you were born.

You can also have an account-based pension as part of your transition to retirement (TTR) arrangements, while continuing to work.

Visit the moneysmart.gov.au website to find out more about starting a TTR pension.