Guaranteed income for life

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Rudolf Tucker
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1 Guaranteed income for life Challenger Guaranteed Annuity (Liquid Lifetime)

2 Retirement is a life-changing event. As you adjust to your new lifestyle, you ll also need to think differently about your finances. Adverse market movements can have a greater impact on your savings and investments in retirement, because you re not replenishing them with a regular income. At the same time, Australians are living longer, with many enjoying a retirement of over 30 years. So it s vital to make your funds last as long as you do. AUSTRALIANS ENJOY ONE OF THE HIGHEST LIFE EXPECTANCIES IN THE WORLD Fortunately, there is a way to guarantee a level of regular income throughout retirement. Lifetime annuities, such as a Challenger Guaranteed Annuity (Liquid Lifetime) are secure investments that provide you with the peace of mind of having income for life, regardless of share market movements or interest rate fluctuations.

3 How does it work? The Liquid Lifetime annuity acts like a pay cheque in retirement. It provides you with a regular source of income, in exchange for an initial capital investment (minimum investment $10,000). Your regular income amount is not affected by share market or interest rate movements. You can also select an indexation option to protect against inflation eroding the purchasing power of your payments. The income payments are tax free if you are over 60 and investing your superannuation money. Combined with the Age Pension, a lifetime annuity can give you more certainty of covering your essential costs of living, such as rent or mortgage payments, food, health expenses, etc., throughout retirement. Income from other sources, such as account-based pensions, investments or savings, can then be used to fund your discretionary spending, like entertainment, eating out or travel. A lifetime annuity creates a regular income for life, regardless of how long you live or how investment markets perform.

4 Features Guaranteed regular payments You can choose to have your payments made monthly, quarterly, half-yearly or yearly. If there is a joint policy owner, regular payments will continue throughout both lifetimes. When the first joint owner dies, the surviving owner receives the payments. You can also choose for payments to be made for the life of a second person after you die. 1 Access to your money You can choose from three liquidity options. The Regular income option provides regular income payments and the flexibility of being able to withdraw your capital, up to an agreed amount, within the first 15 years of the annuity. The Flexible income option offers higher regular payments, but reduces the amount of capital you can withdraw over an agreed withdrawal period. If you prefer to receive the maximum regular payments for life, with no access to your capital, you can choose the Enhanced income option. Certainty around estate planning Depending on the liquidity option you choose, if you pass away within the withdrawal period, and there is no surviving policy owner or reversionary, a guaranteed lump sum payment is then made to your estate. 1 That person is called your reversionary.

5 Liquid Lifetime investors receive: GUARANTEED REGULAR PAYMENTS FOR LIFE PROTECTION FROM KEY RISKS LIKE OUTLIVING SAVINGS AND MARKET VOLATILITY CHOICE AND FLEXIBILITY OF ACCESS TO CAPITAL As with all investments, Liquid Lifetime annuities carry some risks. These risks and how they are managed are set out in the Product Disclosure Statement. We recommend you go through them with your financial adviser before deciding to invest.

6 Adviser contact details 24806/CG1070/0217 The information contained in this publication is current as at 24 February 2017 unless otherwise specified and is provided by Challenger Life Company Limited ABN AFSL (Challenger Life, we, us), the issuer of Challenger Guaranteed Annuity (Liquid Lifetime). The information in this publication has been prepared without taking into account any person s objectives, financial situation or needs. Because of that, 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 Guaranteed Annuity (Liquid Lifetime) Product Disclosure Statement (PDS) and consider the information in the PDS before making any decision about the product. A copy of the PDS can be obtained from your financial adviser, our Investor Services team on , or at We and our 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 policy document. 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 taxation and social security advice for your individual circumstances. Challenger Limited Level 2 5 Martin Place Sydney NSW 2000 Telephone

Challenger Guide to annuities

Challenger Guide to annuities Secure your future with a safe, reliable income stream Table of contents About Challenger 1 Introduction 2 Retirement is different 3 About annuities 4 What is an annuity?