Who is Challenger?

Challenger, Australia's largest annuities provider since 1985, offers financial security for retirement through products like Fixed Term Annuities and Liquid Lifetime Annuities. This guide covers the relationship between Challenger and Netwealth, as well as the different annuity options available through the Challenger platform for Netwealth accounts.

Who is Challenger?

Challenger is publicly listed financial platform has been providing financial services to Australians since 1985 and is the largest provider of annuities in the country. Their vision is to provide customers with financial security for a better retirement. Challenger Limited is our parent company, an ASXlisted company with group assets under management. To learn more about Challenger, visit challenger.com.au/about-us. See our Challenger webpage here, and for more information, research > Challenger Resources & Calculators to be taken to the Challenger Netwealth portal to find PDS, Information guides and more.   

What is a Fixed Term Annuity?

A Fixed Term Annuity provides regular income for a fixed investment term that you choose in return for a lump sum investment. Term annuities are a secure investment offered by a life insurance company and operate in a similar way to a term deposit available from a bank. The lump sum amount invested is returned to you at the end of the fixed term or, alternatively, you can choose to have all or part of the invested amount paid back to you with the regular income payments over the investment term. The regular income we agree to pay you and the return of the amount invested is guaranteed by us regardless of how investment markets perform – giving you peace of mind (protection against market share volatility and inflation). 

Challenger Guaranteed Annuity:

The Challenger Guaranteed Annuity offers a number of options that you can tailor to meet your clients' needs. They can:

• Invest as little as $10,000
• Buy the Annuity with money rolled over within the superannuation system or non-superannuation money
• Choose an investment term between one and 50 years
• Choose to have all of their capital repaid to them at the end of the investment term, or have some or all of it repaid (as part of the regular payments) throughout the investment term
• Choose to have the option to increase regular payments annually in line with changes to the consumer price index or a fixed whole percentage rate
• Elect for an individual (or individuals) to receive the remaining benefit of the Annuity if they die

The rate of return your client will receive is established at the time they apply for the Annuity, and will depend on the product options they choose and prevailing interest rates.

Challenger guarantees that it will not change the rate for the term of the Annuity.

Challenger CarePlus:

Challenger CarePlus (CarePlus) provides fixed monthly payments for the life of the aged care recipient, helping manage aged care costs and living expenses. Payments are guaranteed regardless of how long your clients’ live or how investment markets perform – helping to give them peace of mind.

CarePlus can also give your clients more control  and certainty over their estate planning. Upon death, 100% of the amount invested will be paid to your clients’ nominated beneficiary(ies) or to their estate. Residents of South Australia will receive 100% of the amount invested less the amount of stamp duty initially paid by Challenger.

CarePlus is available to those aged 18 years and over who are receiving, or planning to receive, Government-subsidised aged care services. The minimum investment in CarePlus is $10,000 of non-superannuation money.

What is a Liquid Lifetime Annuity?

Liquid Lifetime is a lifetime annuity. A lifetime annuity is an investment that pays you income for life in return for a lump sum investment. Depending on the payment option selected by you, payments will either be fixed, indexed to inflation, linked to changes in the RBA cash rate or indexed to investment markets. The monthly income we agree to pay you is paid for your lifetime (and your spouse’s lifetime if
you choose to include your spouse as part of the investment), regardless of how long you live, helping to give you peace of mind in retirement. Liquid Lifetime has won a number of awards, including the 2017 Money Management Retirement Product Innovation award, 2018 Chant West Best Fund: Longevity Product award and the 2018 Association of Financial Advisers (AFA) Long Term Income Stream award. Challenger was also named AFA Annuity Provider of the Year in 2021 for the thirteenth year in a row.

Liquid Lifetime:

Liquid Lifetime is a lifetime annuity that pays a regular income for life in return for a lump sum investment. It will pay your clients a lifetime income, regardless of how long they live, helping to give them peace of mind in retirement.

Your clients can use their super or personal savings to invest with a minimum investment amount of $10,000. Liquid Lifetime options can provide:

• regular monthly payments for life (and their spouse’s life if they choose);
• payments that start immediately, or on a future date your client chooses (if using super savings to invest);
• payments that are fixed, that keep pace with inflation, or are linked to the RBA cash rate or investment markets;
• a long period where your client can access a lump sum if their circumstances change*;
• a long death benefit period where a lump sum is payable to your clients' estate or nominated beneficiaries*; and
• a potential boost to your clients’ Age Pension entitlements under Age Pension rules.

* Your clients can ask us to change these features in return for different starting payments.  

Liquid Lifetime provides different payment solutions to suit your clients’ financial circumstances and needs. For income certainty, they can choose CPI indexed or fixed payments. Alternatively, they can choose to have payments linked to changes in the RBA cash rate or investment markets.

How do I set up an Annuity account?

Follow this link to see the how-to guide describing how to open an Annuity account, including how to get a quote, how to set up the account for your client and how to manage an Annuity account once it has been set up. 

How do I apply for an annuity (Challenger)?