Consumer Finance Awards 2025: Longevity Cover Provider of the Year

Challenger has been named Money's Longevity Cover Provider of the Year as part of the 2025 Consumer Finance Awards.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

For retirees who want certainty of income for the rest of their lives, this year's winner, Challenger, offers a suite of annuity products, including ones that pay a continuous lifetime income stream.

Longevity or annuity products are designed to ease the risk of running out of money and relying only on the age pension in old age.

They particularly suit people who are concerned about market volatility, inflation and cost-of-living pressures. Challenger's most popular annuity is Challenger's Liquid Lifetime annuity with an indexation option that keeps up with inflation.

Yet 57% of Australians aged between 50 and 75 are unaware that there are investment options that provide a lifetime income, according to UNSW research.

"As awareness grows, so too will the adoption of these solutions, particularly as more Australians seek stability and security in retirement," says Mandy Mannix, chief executive, customer at Challenger.

Superannuation funds are increasingly offering retirement income products such as annuities. For example, TelstraSuper and NGS include Challenger's annuities.

Over time annuities have become more innovative, offering features such as indexation, death benefits and withdrawals for a fee. Higher interest rates have boosted returns for annuities so that retirees can lock in a healthy rate.

Challenger customers generally structure their retirement income by combining the guaranteed income from an annuity with the flexibility of an account-based pension from their superannuation fund, says Mannix.

"This approach ensures they have stable income while still allowing for the growth of their assets and flexibility in accessing funds if necessary. Research consistently shows that this combination offers retirees the best of both worlds: the security of guaranteed income and the potential for growth," she says.

National Seniors Australia research from 2021 highlighted that some people were worried about future health and aged care costs. "They attempt to manage this by reducing spending, but indications to date are that they are not spending what they can afford," says Mannix.

"Retirees may want quick access to their funds for reasons like travel, home renovations or helping family members. While annuities provide steady income for life, having other flexible savings or investments can help retirees manage these occasional needs without affecting their guaranteed income."

For retirees who want the option of accessing their money from the annuity for an unexpected event, Mannix says Challenger's Liquid Lifetime annuity offers a long withdrawal period based on the individual's life expectancy, allowing for a lump sum if absolutely necessary."

"It's important to remember that the annuity is designed to provide income throughout retirement, and accessing funds from flexible investments outside the annuity is generally a better way to manage unexpected expenses without affecting the guaranteed income," says Mannix.

Why they won

A developed range of income stream products including guaranteed income for life annuities to give retirees a steady income for their lifetime.

Top products

Indexed lifetime income, deferred lifetime and market-linked annuities

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