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.

Flexible Income
(Immediate payments)
Choose this option if you want income certainty. You will receive CPI-indexed payments for life that start a month after investment. Alternatively, you can ask to have payments fixed (so that they never change) or linked to changes in the RBA cash rate (so that they move up and down whenever the cash rate changes).

Flexible Income
(Deferred payments)
Choose this option if you want income certainty but you do not want payments to start immediately. You will receive CPI-indexed payments for life that commence at a future time that you choose. Alternatively, you can ask to have the deferred payments fixed (so that they never change) or linked to changes in the RBA cash rate (so that they move up and down whenever the cash rate changes).

Flexible Income
(Market-linked payments)
Choose this option if you want your payments linked to changes in investment markets. Your payments will be less predictable year to year because payments will be indexed up and down based on the performance of your chosen market index. You will receive payments for life that start a month after investment. 

When you buy a Liquid Lifetime, your investment goes into a fund along with the investments received from other annuity investors. This fund is known as a ‘statutory fund’, and all regular payments to our annuity investors are paid from this fund. We are also required by APRA to invest our own money into the fund.

APRA monitors the statutory fund’s investments, the aim of which is to ensure that we can meet the promises that we have made to you. APRA is the authority that regulates the banking, insurance and superannuation industries. If at any time we do not achieve investment returns that are sufficient to cover all the promises that we have made to our annuity investors, we must cover the shortfall from the money we have invested in the fund. 

How we invest
Challenger will invest the assets of the statutory fund, subject to investment restrictions in the Life Act. Generally, the fund will be invested in cash, shares, government and corporate bonds, convertible notes,  debt instruments, geared and ungeared property investments, infrastructure investments, equities and other assets. The investment objectives for the fund include to achieve consistent returns on investment and to match the cash flow in from investment returns with cash flow out to investors so that all present and future payments can be made to all investors.