Save. Plan. Retire.

allianz annuities save plan retire

Allianz Annuities: A Complete Review

Contents

Plan for retirement now to live the life you want and avoid money worries later.

allianz annuities save plan retire

Getting Started With Allianz Annuities

This comprehensive guide will look into the pros and cons, features and benefits, as well as the disadvantages of annuities. Specifically, how you can get the best from the Allianz Life Insurance Company of North America suite of annuity investment products.

Allianz is one of the best annuity companies in the world. Many customers choose Allianz as a top annuity company due to their strong reputation and claims paying abilities. Buying an annuity is a very serious decision. Therefore, you should understand the disadvantages of a specific annuity, how it credits interest, and its realistic potential returns.

Navigating Retirement Planning Challenges

Financial Planning Made Simple

Understanding money and investments can be tough. We all want a future where we can relax, not stress about money, and know our savings are growing. But life and market changes make this seem impossible.

Don’t worry if you’re feeling overwhelmed. Remember, your savings are a reflection of your hard work. Also, they’re not just for your retirement but for things like helping your grandkids with school. Planning for retirement is about more than just money—it’s about living well and leaving a legacy.

Challenges in Retirement Planning

Even if you’re great at planning, retirement finances can be tricky. Why? Because there are several obstacles:

  1. Market Changes: Markets around the world can be unpredictable. Sudden downturns could affect your savings. It’s normal to worry about this.
  2. Living Longer Lives: We’re living longer these days. That’s good news! But it also means our money needs to last longer. Certainly, No one wants to run out of savings.
  3. Inflation: Prices go up over time, meaning the value of your savings might not go as far as you hope in the future.
  4. Healthcare Costs: Health problems can happen without warning. Even with good insurance, medical bills can use up a lot of your savings.
  5. Thinking About Family: Many people want to leave some money to their family or even give gifts while they’re still alive. Therefore, It’s an important part of retirement planning.

Demystifying Annuities and an Introduction to Allianz Annuities

Annuities are powerful tools that can help you to secure your financial future. In this guide, we’ll be delving deeper into the world of Allianz annuities.

We will assist you in understanding Allianz products, including annuities. We will also help you explore their features and tax implications and decide if they are the right choice for you. Additionally, we will guide you on maximizing your investment.

A Quick Introduction to Allianz Annuities

How do you imagine your retirement? Perhaps you have big plans to travel the world.

Maybe you’ll spend your days on the golf course. Or you may want to chase a business venture that allows you to work for yourself. Whatever your plans, you’ll need the finances to make your retirement dreams happen.

Annuities aren’t an investment in the traditional sense of the term. Specifically, they are more like insurance contracts, designed to produce a steady income throughout your retirement. This makes them less risky than other financial products, such as stocks. They also put you in control of when you start receiving payments.

Annuities offer the following advantages: 

  • Steady Income: Reliable financial support in retirement
  • Guarantees: Protection against market volatility
  • Tax-Advantaged: Tax benefits for earnings growth
  • Customization: Tailored options to suit your needs
  • Lifetime Income: Assurance of income for life
  • Death Benefits: Payout to beneficiaries upon passing
  • Diversification: Portfolio expansion beyond traditional investments
  • Protection: Safeguard against economic downturns
  • Long-Term Planning: Support for lasting retirement plans

In conclusion, It’s essential to have a well-structured plan in place when planning for retirement. And annuities can be a fundamental component of your investment portfolio, offering a reliable source of income when the time comes. Therefore, understanding annuities is essential for unlocking their potential benefits: a steady income stream, and protection against volatile market performance. But above all, peace of mind that your hard-earned savings will sustain you throughout your retirement years. 

Allianz Annuities: Fixed Index (FIA) and Registered Index-Linked (RILA) Annuities

Allianz has two types of annuities for retirement: fixed index annuities (FIAs) and registered index-linked annuities (RILA). To decide which product to choose, it’s important to know the advantages, payment options, and costs of each. Specifically, let’s take a closer look at the options Allianz has to offer and how they work. 

Allianz Fixed Index (FIA) Annuities

Unquestionably, the best fixed index annuities help you to accumulate money safely and provide a guaranteed income after you retire. Fixed index annuities may be a good investment option. Additionally, they provide indexed interest and avoid the risk of losing money due to unpredictable markets. 

How do Allianz Fixed Index Annuities Work? 

FIA investments typically have two phases. The first is the accumulation phase. Specifically, this is where your annuity earns interest and grows tax-deferred. 

The Accumulation Phase

  • Buy an annuity: The first part of phase one is the purchase of the annuity. You make a payment or payments to Allianz. In return, they provide you with an annuity product that offers a range of benefits and guarantees. We’ll cover this later in the guide. 
  • Your annuity starts earning interest and enters the accumulation phase. The performance of an external index determines how the interest is earned. Annuities aren’t linked to market activities, so volatile markets don’t put them at risk. Allianz also offers a guaranteed annual fixed interest rate. 
  • Your annuity continues to grow tax-deferred: A big advantage of fixed index annuities is that you don’t need to pay taxes on the interest your annuity earns over time. This means that the money in your annuity can accumulate at a faster rate. 

The Distribution Phase

The second phase is the distribution phase. Your annuity contract will specify when and how you start to receive payments from your annuity. Accordingly, you can choose how your FIA is paid. For example, you might choose a lump sum payment or opt for payments distributed over a set period.

Registered Index-Linked Annuities From Allianz (RILA Annuity)

RILA investments, also known as index variable annuities, are a relatively new type of annuity product. Annuity companies offer them as a middle ground between fixed index annuities and variable annuities.

These products have special features. These features allow you to invest and potentially grow your money. Additionally, they can also protect your money. They help you achieve your financial goals. 

Allianz introduced RILAs in 2013 to provide customers with a product that offered good growth potential and protection from market downturns. While other insurers have released their own RILA insurance products, Allianz variable annuities remain the industry leader in indexed annuities

How Do Allianz Registered Index-Linked Annuities Work?

Specifically, one of the biggest benefits of RILAs is the flexibility and unique features they have to offer. However, it’s important to know that they come with some exposure to market risk. There are also contact fees and charges to take into consideration. That said, RILAs don’t limit how much money you can deposit, and like FIAs, they offer tax-deferred growth potential. 

RILAs involve some investment risk due to potential market downturns, such as loss of principal. Most RILAs also have what is known as a deferral period.

You may have to pay a fee if you take out money from your annuity before the agreed time. It’s also worth knowing that withdrawals made before you turn 59½ will be subject to an additional 10% federal tax. More on this later in the guide. 

Allianz Fixed-Index Annuities: The Products Explained

Allianz offers a variety of fixed index annuities. These annuities can help you achieve your retirement and financial goals. Clearly, with so many options available, you can find the one that is right for you. Let’s take a closer look into each product, its features, and who each product might be the right fit for. 

Consulting a financial professional is recommended to ensure a product aligns with your financial aspirations.

Allianz Benefit Control Annuity

The Allianz Benefit Control Annuity allows you to choose when and how much you want to increase your potential income payments. This can be done with the Benefit Control rider. This annuity also promotes tax-deferred growth, ensuring funds compound without immediate tax consequences. Allianz Benefit Control offers a special mix of growth and personalized control for retirement income, giving people the balance they desire.

Who Might Be Interested?

  • Individuals seeking the tax-deferred growth potential of fixed index annuities for their retirement savings.
  • Those valuing flexible participation rates and potential income boosts during their retirement journey.
  • Individuals seeking the strength of Allianz Life Insurance Company North America.

Features:

  • Principal Protection: Safeguard your initial investment from market downturns.
  • Tax-Deferred Growth: Your gains are taxed when you start receiving income by withdrawal.
  • Investment Allocation Choices: Several, including the Bloomberg US Dynamic Balance Index ii, the Blackrock ibld Claria Index, and the Pimco Tactical Balanced index
  • Premium and Interest Bonus: Receive a 25% bonus on premiums in the first 18 months. Earn an indexed interest bonus via the Bonus Control Benefit.
  • Lifetime Income Withdrawals: Potential increases based on your earned interest and the interest bonus.
  • Death Benefit Options:
    • Beneficiaries can opt for a lump-sum payout or
    • Receive annuity payments over at least five years, capped at 250% of the accumulation value.
  • Bonus Details: Bonuses apply only to the Protected Income Value (PIV) and have specific conditions and restrictions.
  • Index Lock and Auto-Lock: These features allow for locking in an index value manually or automatically based on set targets.
  • Access to Funds: 10% of the contract’s premium can be withdrawn annually without penalties after the first year.
  • Surrender Charges: penalties for early withdrawals exceeding the 10% penalty-free amount. The following percentages would be paid to surrender in years 1,2,3 etc (9.3%, 9.3%, 8.3%, 7.3%, 6.25%, 5.25%, 4.2%, 3.15%, 2.1%, 1.05%, 0%)
  • Payout Options: Varied options are available immediately or monthly after your anniversary after age 50, with opportunities for income increases.
  • Death Benefit: Multiple options are available to beneficiaries, including lump-sum payouts or annuity payments.

Allianz 222

Allianz 222 Annuity is a fixed index annuity that stands out by offering potential indexed interest based on several stock market indexes’ performance without risking the loss of the principal due to market downturns. This annuity provides a unique bonus structure on both premium and interest earned, enhancing the accumulation potential. Beneficiaries also benefit from a thoughtful death benefit provision. 

Who Might Be Interested?

  • Individuals focused on a stable retirement saving strategy available through Allianz Life Insurance Company.
  • Those desiring the opportunity for potential income boosts.

Features:

  • Principal Protection: Safeguard your capital against market downturns.
  • Tax-Deferred Growth: Your earnings aren’t taxed until withdrawn.
  • Bonuses:
    • Get a 40% bonus on premiums in the first 18 months.
    • Benefit from an interest bonus, yielding a 150% credit of interest from your selected allocations.
    • As you start getting money, it can increase with the interest you’ve earned, boosted by a 150% interest bonus.
  • Death Benefit Options:
    • Beneficiaries can opt for a one-time payout of the full accumulation value or
    • Choose to get the complete Protected Income Value as annuity payments spread over a minimum of five years.
  • Bonus Clarifications: Bonuses are specific to the Protected Income Value (PIV) and come with certain conditions and potential restrictions. for example to receive the PIV including any bonus you have to hold the annuity contract for ten contract years.
  • Investment Allocations: Choose from various options based on your risk tolerance and goals, with a 100% participation rate for different allocation methods. Popular allocations include a fixed interest credit, dynamic balance index ii, and a pimco tactical balanced allocation.
  • Index Lock and Auto Lock: Mechanisms to lock in index values manually or automatically based on set targets give you more control over your investment.
  • Income and Accumulation Benefits: Numerous ways to receive bonuses on your contract’s Protected Income Value, designed specifically for lifetime withdrawals.
  • Access to Funds: Withdraw up to 10% of the contract’s premium annually after the first year without incurring penalties.
  • Surrender Charges: (10%, 10%, 10%, 8.75%, 7.50%, 6.25%, 5.00%, 3.75%, 2.50%, 1.25%, 0%) beginning in contract year 1, 2, 3 etc.
  • Payout Options: Begin receiving monthly income after ten contract years. You could receive up to twice your annual maximum income withdrawal amount if you are in a nursing home by using the Allianz income multiplier. Flexible choices with numerous pros and cons for lifetime income withdrawals with increased payment opportunities.
  • Death Benefit: Multiple options available to beneficiaries, including of lump-sum cumulative withdrawal amount payouts or protected income value (PIV) including the premium bonus and interest bonus, annuity payments.

Allianz 360 Annuity With 360 Benefit Rider

The Allianz 360 Annuity caters to those aiming to optimize retirement income with a degree of security. Unique features of this product include bonus potential, tax-deferred growth prospects, and lifetime withdrawal options that can increase over time. It’s tailored for individuals between ages 0-80, requiring a minimum initial investment. With its balance of growth potential and income assurance, Allianz 360 is a comprehensive retirement planning tool.

Who Might Be Interested?

  • Individuals keen on robust retirement savings.
  • Those wanting the potential for lifetime income increments.

Features:

  • Principal Protection: Your capital remains shielded from market downturns.
  • Tax-Deferred Growth: Enjoy the advantage of not paying taxes on earnings until they’re withdrawn.
  • Retirement Savings Boost: Three distinct ways to bolster your retirement savings:
  • Fixed and/or indexed interest opportunities.
  • A 125% interest bonus on your contract’s credited interest until withdrawals commence.
  • From age 40 onwards, a yearly increment in your lifetime income withdrawal percentage until you start withdrawals.
  • Income Withdrawal Options: From age 50, choose between:
  • Predictable, fixed income or
  • Income that can potentially increase each crediting period.
  • Bonus Considerations: Bonus annuities might come with certain charges or restrictions. It’s important to be aware of these details to make informed decisions.
  • Rates and Allocations: Participate fully in the index’s growth with various allocation options. Specifics like caps and spreads still apply.
  • Control investments by manually or automatically locking in index values using set parameters.
  • Income and Accumulation Benefits: The added 360 Benefit rider amplifies both your retirement savings and your lifetime withdrawals. Note that this rider has a charge.
  • After the first year, you can take out 10% of your savings each year without any fees.
  • Payout Options: Choose between Level Income for consistent payouts or Increasing Income for potential payment hikes based on interest allocations.
  • Before you start receiving regular payments or a lump sum from the contract, there is the option of a death benefit. This death benefit can be received for a minimum of five years.

Accumulation Advantage

Accumulation Advantage Annuity offers diverse allocation options and principal protection. This product is ideal for individuals between ages 0-80, seeking a minimum initial premium of $20,000. The Accumulation Advantage stands as a balanced blend of safety and growth potential for retirement planning.

Who Might Be Interested?

  • Individuals aiming for a substantial retirement savings pool.

Features:

  • Principal Protection: Safeguard your capital from market downturns.
  • Tax-Deferred Growth: Potential for growth without immediate tax liabilities.
  • Annuity Payment Options: Choose how you’d like to receive your annuity payments.
  • Beneficiary Benefits: Provision of a death benefit for your heirs.

Accumulation Benefits:

  • Get potential indexed interest based on external market index changes.
  • Direct your premiums towards 17 index allocations or a fixed interest allocation.

Key Information:

  • Issue Age & Minimum: Suitable for ages 0-80 with a minimum initial premium of $20,000.
  • Rates: Vary based on the amount of your initial premium. The participation rate is 100% guaranteed for life, with specific conditions applied.
  • Allocation Options: Multiple index options such as S&P 500® Index, Bloomberg US Dynamic Balance Index II, and more.
  • Index Lock: Manually lock an index value during the crediting period with conditions applied.
  • Auto Lock: Automatically set index interest rate percentage targets per crediting period with specific guidelines.
  • Access to Funds: Post the first contract year, up to 10% of the contract’s premium can be withdrawn annually without penalties.
  • Withdrawal Charges: Follow a 10-year withdrawal period with decreasing percentages, reaching zero in the 11th year.
  • Market Value Adjustment: This applies in specific situations and is calculated using the MVA reference rate.
  • Payout Options: Multiple annuity options with potential tax advantages are available after five contract years.
  • Before annuitization, you can receive either a lump sum or annuity income for at least five years. The amount you get will be the higher of the contract’s accumulation value or guaranteed minimum value.

Essential Income 7

The Essential Income 7 Annuity is designed for individuals prioritizing consistent retirement income. It provides simplified annual point-to-point indexing and a range of index allocation choices.

Its distinct feature, the Essential Income Benefit, increases withdrawal percentages yearly until withdrawals commence. It requires a $10,000 starting investment for all ages. If you withdraw early, there is a seven-year fee. This allows flexibility in financial planning.

Who Might Be Interested?

Individuals aiming to secure a guaranteed lifetime income to cover their retirement essentials.

Features:

  • Principal Protection: Safeguard your initial investment from market fluctuations.
  • Tax-Deferred Growth: Enjoy the potential for growth without immediate tax implications.
  • Lifetime Retirement Options: Various ways to receive income throughout retirement.
  • Death Benefit: Ensure your beneficiaries are financially secure.

Accumulation Benefits:

  • Straightforward Indexing: Uses an annual point-to-point strategy.
  • Potential Indexed Interest: Choose from two index allocation options to possibly grow your interest.

Key Information:

  • Issue Age & Minimum: Open to individuals aged 0-80 with a minimum initial premium of $10,000.
  • Rates: Offers a guaranteed 100% participation rate throughout the contract’s life.
  • Allocation Options include the S&P 500® Index and Bloomberg US Dynamic Balance Index II.
  • Index Lock: Allows you to manually lock in an index value during the crediting period.
  • Auto Lock: Automatically set upper and lower index interest rate percentage targets during each crediting period.
  • Withdraw up to 10% of the premium each year without penalties after the first year, with conditions.
  • Withdrawal Charges: Seven-year surrender charge period starting at 8.5% and decreasing each year.
  • Market Value Adjustment (MVA): Applicable in specific situations, calculated using the MVA reference rate.
  • Payout Options: Starting at age 45, your contract’s lifetime withdrawal percentages will increase annually. Choose from predictable payouts or payments with the potential for annual increases.
  • The death benefit pays beneficiaries either the contract’s total value or the guaranteed minimum value (GMV). This can be given as a one-time payment or as regular income for a minimum of five years.

Retirement Foundation ADV

The Retirement Foundation ADV Annuity offers simplified annual point-to-point indexing. It also provides interest potential from four market indexes. Additionally, it includes a built-in Income Benefit rider.

This rider increases lifetime withdrawal percentages every year. With a seven-year withdrawal charge period, it balances flexibility with long-term security. Suitable for ages 0-80 with a $10,000 minimum premium.

Who Might Be Interested?

Individuals aiming to establish a solid retirement income foundation with lifelong guaranteed payments.

Features:

  • Principal Protection: Shield your initial investment from potential market downturns.
  • Tax-Deferred Growth: Enhance your retirement savings potential without immediate tax implications.
  • Lifetime Retirement Options: Flexible options to receive a steady income throughout retirement.
  • Death Benefit: Security for your beneficiaries with a death benefit.

Accumulation Benefits:

  • Straightforward Indexing: Annual point-to-point crediting for easy tracking.
  • Variety of Index Options: Tap into the potential of 4 external market indexes or a fixed interest option.

Key Information:

  • Issue Age & Minimum: Open to ages 0-80, with an initial premium of $10,000.
  • Rates: 100% participation rate guaranteed for the entirety of the contract.
  • Allocation Options: Choices include S&P 500® Index, Nasdaq-100® Index, Russell 2000® Index, and Bloomberg US Dynamic Balance Index II.
  • Income Benefits: Built-in Income Benefit rider enhances your annuity by providing increasing lifetime withdrawal percentages and diverse payment options.
  • Access to Funds: After the first year, withdraw up to 10% of the premium annually without penalties, within set conditions.
  • Withdrawal Charges: Seven-year charge period, starting at 6.5% and gradually decreasing.
  • Market Value Adjustment (MVA): Applied under specific circumstances during the withdrawal charge period.
  • Payout Options: Commencing at age 45, enjoy increased lifetime withdrawal percentages annually. Choose from Level Income for predictable payments or Increasing Income for potential payment boosts.
  • Death Benefit: Beneficiaries can opt for the highest among full accumulation value, cumulative withdrawal amount, net premium, or guaranteed minimum value, either as a lump sum or annuity income spanning at least five years.

Core Income 7

Allianz’s Core Income 7 Annuity caters to those focusing on future income stability. The product stands out with features like annual and 2-year point-to-point indexing and diverse index allocation options. Its hallmark is the Core Income Benefit rider, increasing lifetime withdrawal percentages annually.

This plan is suitable for people of all ages. It requires an upfront payment of $10,000. Additionally, it allows for withdrawals without any fees for a period of seven years. This feature can greatly assist in financial planning.

Who Might Be Interested?

Those seeking a steady income foundation for retirement with lifelong guaranteed payouts.

Features:

  • Principal Protection: Safeguard your investment against market downturns.
  • Tax-Deferred Growth: Reap the benefits of potential growth without immediate tax implications.
  • Lifetime Retirement Options: Tailored options for a steady retirement income.
  • Death Benefit: Ensuring your beneficiaries are taken care of.

Accumulation Benefits:

  • Straightforward Indexing: Annual and 2-year point-to-point crediting to track growth.
  • Variety of Index Allocation: Leverage powerful indexed interest potential.

Key Information:

  • Issue Age & Minimum: Open to ages 0-80, with a $10,000 initial premium.
  • Rates: 100% participation rate for select allocation options. Caps or spreads may apply.
  • Allocation Options: A range including S&P 500® Index, Nasdaq-100® Index, and more.
  • The Core Income Benefit rider enhances your annuity by providing increased funds for withdrawals and offering various options for receiving payments.
  • Access to Funds: After year one, avail up to 10% of the premium annually without penalties.
  • Withdrawal Charges: A seven-year charge period, starting at 8.5% and reducing progressively.
  • Market Value Adjustment (MVA): Applicable under specific conditions during the surrender charge period.
  • Payout Options: From age 45, enjoy the benefit of automatically increasing lifetime withdrawal percentages. Opt between Level Income for consistent payouts or Increasing Income for potential payment growth.
  • Death Benefit: Beneficiaries are entitled to the highest value among the full accumulation value, cumulative withdrawal amount, net premium, or guaranteed minimum value, available either as a lump sum or over a minimum of five years as annuity income.

Allianz Registered Index-Lined Annuities: The Products Explained

Allianz has many annuities with index-linked options. You can pick the one that fits your retirement and financial goals. 

Important Note: “What is a Rila Product?” As a Registered Index-Linked Annuity (RILA), Rila products are subject to the risk of loss. This includes the potential loss of principal, and the value will fluctuate with market conditions. This means that the units may be worth more or less than the original cost upon distribution.

Index Advantage+

Index Advantage+ is Allianz’s main annuity that is linked to an index. It is designed to assist with retirement planning and works alongside your current retirement efforts. 

Who Might Be Interested?

 Investors can find indexed returns, protection, tax-deferred growth, annuity payout options, and a death benefit in this product.

Features:

  • Issue Age: Suitable for ages 0-85.
  • Contract Maintenance Charge: $50 annually (waived for contract values of $100,000 or more).
  • Purchase Payments:
    • Minimum initial: $10,000.
    • Minimum subsequent: $50.
    • Maximum: $1,000,000.
  • Withdrawal Charge Schedule: 6 years for each purchase payment (8.5%, 8%, 7%, 6%, 5%, 4%, 0%).
  • Product Fee: 1.25% of the charge base.
  • Free Withdrawal Privilege: 10% of total purchase payments, available annually.
  • Death Benefits: Two options available during the accumulation phase:
    • Traditional Death Benefit.
    • Maximum Anniversary Value Death Benefit (additional 0.20% rider fee).
  • Variable Option: AZL® Government Money Market Fund*.
  • Index Options: Multiple strategies with different indexes, terms, and applicable buffers or floor amounts are available.
  • Tax-Free Transfers: Allowed on every Term End Date.
  • Standard Contract Features: Includes a required minimum distribution program and waiver of withdrawal charge benefit.
  • Annuity Payout Options: Various options like life, joint and survivor, life with a guaranteed period, and more.

Allianz Index Advantage+ NF Variable Annuity

Allianz Index Advantage+SM Variable Annuity allows you to customize your allocations with at least one or more Index Options, each offering a unique risk/return objective to help meet various investor profiles. 

Who Might Be Interested?

Individuals aged 0-85 who are looking for a flexible annuity product with a blend of traditional and index-linked growth potential. It’s an ideal product for those seeking to protect their retirement savings and benefit from diverse index strategies.

Features:

  • Issue Age: Suitable for ages 0-85.
  • Contract Maintenance Charge: $50 annually (waived for contract values of $100,000 or more).
  • Purchase Payments:
  • Minimum initial: $10,000.
  • Minimum subsequent: $50.
  • Maximum: $1,000,000.
  • Withdrawal Charge Schedule: 6 years for each purchase payment (8.5%, 8%, 7%, 6%, 5%, 4%, 0%). Withdrawals may be subject to taxes and potential federal penalties if taken before age 59½.
  • Free Withdrawal Privilege: 10% of total purchase payments, available annually.
  • Death Benefits:
    • Traditional Death Benefit.
    • Maximum Anniversary Value Death Benefit (additional 0.20% rider fee for issue ages 0-75).
  • Variable Option: AZL® Government Money Market Fund*.
  • Index Options: Multiple strategies available with different indexes and terms, with daily adjustments.
  • Tax-Free Transfers: Allowed on every Term End Date.
  • Standard Contract Features: Required minimum distribution program and waiver of withdrawal charge benefit.
  • Annuity Payout Options: Various options such as life, joint and survivor, and more.

Index Advantage+ Income

Allianz’s Index Advantage+ Income Variable Annuity offers a robust combination of traditional investment choices and index-based strategies’ upside potential. Created for changing retirement needs, it allows you to gain from market growth while keeping your initial investments safe. Customizable allocations across multiple index options provide unique risk/return goals, perfect for securing and growing retirement funds.

Who Might Be Interested?

Tailored for individuals between the ages of 0-85, this product is especially suited for those who wish to ensure their retirement savings are protected from market downturns, while also participating in potential market upturns. It’s a perfect blend of safety and growth, offering both traditional and index-linked growth potential. 

Features:

  • Issue Age: Open for individuals aged 0-85.
  • Contract Maintenance Charge: An annual charge of $50 is waived if the contract value surpasses $100,000.
  • Purchase Payments:
    • Minimum initial: $10,000.
    • Minimum subsequent: $50.
    • Maximum limit: $1,000,000.
  • Withdrawal Charge Schedule: A declining scale over six years (starting at 8.5% and reducing to 0% by year seven). Withdrawals can be subject to ordinary income tax and if taken before age 59½, may attract a 10% federal additional tax.
  • Free Withdrawal Privilege: You can withdraw up to 10% of total payments yearly without penalties.
  • Death Benefits:
  • Traditional Death Benefit: Highest of the contract value or total purchase payments adjusted for withdrawals.
  • Maximum Anniversary Value Death Benefit (for those aged 0-75 at an additional 0.20% rider fee).
  • Variable Option: Investment can be channeled into the AZL Government Money Market Fund.
  • Index Options: Offers daily adjustments with a variety of strategies based on renowned indices like S&P 500, Russell 2000, and more.
  • Tax-Free Transfers: Possible on every term’s end date.
  • Standard Contract Features: Includes benefits like the required minimum distribution program and potential waiver of withdrawal charges.
  • Annuity Payout Options: A range to choose from, such as life, joint and survivor, and several others.

Index Advantage ADV Variable Annuity

The Allianz Index Advantage ADV Variable Annuity includes different index choices like the S&P 500 and Russell 2000 Index. It allows tax-free transfers between these options. It also offers the security of traditional death benefits while providing a Maximum Anniversary Value Death Benefit option.

The AZL Government Money Market Fund offers stability and the potential for market-linked returns. This makes it an excellent retirement solution.

Who Might Be Interested?

Designed for individuals aged 0-85, this annuity is ideal for those who aim for a retirement plan that seamlessly blends consistent returns and the growth potential of market-linked strategies.

Features:

  • Issue Age: Tailored for ages 0-85.
  • Contract Maintenance Charge: $50 annually (waived for contract values of $100,000 or more).
  • Purchase Payments:
    • Minimum initial: $10,000.
    • Minimum subsequent: $50.
    • Maximum: $1,000,000.
  • Withdrawal Charge Schedule: A declining 6-year schedule (8.5%, 8%, 7%, 6%, 5%, 4%, 0%). Note: Early withdrawals might incur taxes and potential penalties.
  • Free Withdrawal Privilege: 10% of total purchase payments available annually.
  • Death Benefits: Two distinct benefits are available during the accumulation phase.
  • Variable Option: AZL® Government Money Market Fund*.
  • Index Options: Multiple strategies, each tethered to renowned indexes.
  • Tax-Free Transfers: Permitted on every Term End Date.
  • Standard Contract Features: Encompasses a required minimum distribution program and a waiver of withdrawal charge benefit.
  • Annuity Payout Options: A diverse set of options, ranging from life to joint and survivor provisions.

Index Advantage Income ADV

The Index Advantage Income ADV blends the benefits of indexed growth with the assurance of income. This product includes a unique Market Value Adjustment (MVA) feature, which adjusts the contract value based on interest rate changes. This ensures that your investment stays aligned with fluctuations in the market. 

Who Might Be Interested?

This product is for people aged 0-80 who want a balance between steady income and potential market returns for retirement. It’s great for people who like diverse index strategies and want different ways to make money. 

Features:

  • Issue Age: Suitable for ages 0-80.
  • Contract Maintenance Charge: $50 annually (waived for contract values of $100,000 or more).
  • Purchase Payments:
    • Minimum initial: $5,000.
    • Minimum subsequent: $50.
    • Maximum: $3,000,000.
  • Product and Rider Fees: 0.25% product fee and 0.70% Income Benefit rider fee.
  • Market Value Adjustment (MVA): Adjusts Contract Value based on interest rate changes up to +/-10%.
  • Free Withdrawal Privilege: 10% of total Annual Contribution Amounts available annually.
  • Death Benefits: Traditional or Maximum Anniversary Value Death Benefit options.
  • Variable Option: AZL® Government Money Market Fund*.
  • Index Options: A diverse range of strategies linked to renowned indexes.
  • Lifetime Income Percentages: Increases from age 45, determining the income payments.
  • Income Multiplier Benefit: Offers the possibility of higher withdrawals under certain health conditions.
  • Standard Contract Features: Includes a required minimum distribution program.
  • Annuity Payout Options: Multiple options, from life to joint and survivor provisions and more.

Decoding Costs: Understanding Fees and Charges in Allianz Annuities

When considering investing in a financial product, it’s essential to understand any associated charges or fees. To maximize your investment, be cautious of fees that can reduce your income and result in lower returns than anticipated. 

Allianz is transparent about its fees, so there are no unexpected costs when buying or having an annuity contract with them. Let’s look at some of the charges you may come across when choosing and investing in Allianz annuities. 

Common Charges Associated With Allianz Annuities

Mortality and Expense Risk Charge

This charge covers the risks and costs the insurance company takes when guaranteeing certain annuity payments. 

Surrender Charges

You might have to pay a fee if you take out money from your annuity before a set time. Over time, this fee decreases and finally drops to zero. 

Admin Fees

These fees are usually put in place to cover the cost of paperwork, record keeping and other administrative services. 

Rider Charges

Some annuity products come with optional riders that offer a range of additional benefits. These extra features usually always attract a fee. 

Investment Management Fees

If your annuity’s returns depend on investments, you’ll likely have to pay fees for managing those investments. 

Fees Example: 

Let’s look at how fees work in the Allianz 222 Fixed Index Annuity and other Allianz annuity products. 

Contract Maintenance Charge: 

A yearly fee of $50. However, this charge is waived if your contract value is $100,000 or more. This fee covers the administrative costs associated with managing the annuity.

Purchase Payments: 

The minimum initial payment to start your annuity is $10,000. For subsequent payments, the minimum is $50, with a maximum limit of $1,000,000.

Withdrawal Charges: 

You might incur a withdrawal charge if you withdraw money from your annuity, especially in the early years. The Allianz 222 has a withdrawal charge schedule that lasts for six years. The charge starts at 8.5% in the first year and decreases each year until it reaches 0% in the seventh year.

It’s crucial to note that all withdrawals are subject to ordinary income tax. Furthermore, if taken before the age of 59½, they may also incur a 10% federal additional tax.

Product and Rider Fees: 

These are the fees associated with specific features or benefits added to the base annuity. For instance, the Allianz 222 has a 1.25% product fee calculated quarterly based on the contract value.

This fee covers the insurance company’s costs and risks associated with providing indexed returns and guarantees.

Allianz 222 has two death benefit options. The Maximum Anniversary Value Death Benefit has an extra 0.20% rider fee.

Market Value Adjustment (MVA):

The Market Value Adjustment does not function as a fee. However, it can impact the amount you receive upon withdrawing money, which depends on the fluctuations in interest rates since the time of purchase.

Bonus Features: 

The Allianz 222 offers features like the Protected Income Value (PIV) bonus. However, these bonuses often come with conditions, and reading the fine print is important. You need to keep the contract for ten years to get the PIV bonus and then start taking lifetime income withdrawals.

Make Sure the Benefits Justify the Costs

Savvy investors are always aware of the associated costs of the products they invest in. It’s always worth getting financial advice if the fee structure looks a little daunting. Always weigh up the benefits and guarantees against the costs when evaluating an annuity product. 

Understanding the Tax Implications and Benefits of Allianz Annuities

Annuities, including those offered by Allianz, come with specific tax implications and benefits. Here’s a breakdown:

Tax-Deferred Growth

Annuities have a major tax benefit: your investment can grow without being taxed. This means that no tax is payable on your annuity until you start making withdrawals. 

Ordinary Income Tax

When you decide to withdraw money from your annuity, the earnings are taxed as ordinary income. Remember, the principal – the amount used to purchase the original annuity – is not subject to ordinary tax. 

10% Federal Additional Tax

If you decide to withdraw from your annuity before you reach the age of 59½, you may have to pay 10% federal additional tax alongside ordinary tax. 

Death Benefits and Taxes

If your family gets money from your annuity, they might have to pay taxes on the money they earn from it. The good news is that they won’t have to pay a 10% federal additional tax on top. 

Annuity Payouts

If you decide to get regular payments from your annuity, each payment will include the original amount and the money earned. The earnings part of each payment will be subject to ordinary income taxes. 

Tax-Free Transfers

Many Allianz annuity products allow you to transfer money between different investment choices and index options without paying tax. 

The tax implications and benefits associated with annuities can often put people off of choosing annuities because they seem complicated. With a tax expert’s help, you can understand how these rules apply and use annuities to your advantage. 

Planning Ahead with Allianz Annuities: Your Early Start to a Secure Future

Future Planning Made Easier

Organizing for the future can be straightforward and even rewarding with the appropriate financial tools. Effective financial products instill confidence in the realization of your long-term objectives, be it accomplishing personal goals or cherished moments with loved ones.

Why Consider Allianz for Retirement?

Allianz is a recognized leader in providing annuities for retirement planning. Such planning ensures optimal enjoyment during your post-career years. Here are compelling reasons to integrate Allianz products into your financial blueprint:

  • Innovative Annuity Offerings: Allianz’s offerings, like the Index Advantage+ and 222 Annuity, fuse traditional safety nets with contemporary investment tactics. This dual approach safeguards and potentially augments your capital, which is especially beneficial for early retirement planners.
  • Global Expertise, Local Understanding: Allianz’s expansive global footprint allows them to harness international financial acumen. Concurrently, their familiarity with local market dynamics ensures investments are both universally robust and regionally apt.
  • Dedication to Customers: The finance realm can seem intricate. Allianz’s acclaimed customer support ensures that you have guidance every step of the way, demystifying the annuity process.
  • Commitment to Ethical Practices: In today’s context, sustainable operations are crucial. Allianz’s dedication to ethically sound business activities assures that your investments are both lucrative and morally upright.
  • Reliable Stability: The financial prowess and dependability of Allianz are standout qualities. With them, you can be confident in the security of your funds, allowing you to center on life’s endeavors.
  • Informative Empowerment: Allianz is a proponent of investor enlightenment. Their suite of educational tools ensures you grasp the nuances of your investments, facilitating discerning choices.
  • Tailored Solutions: Recognizing the uniqueness of individual life paths, Allianz offers adaptable annuities. This allows for strategic planning that could enhance future financial comfort or provision for familial responsibilities.

Estate Planning

Pondering your financial legacy, even in early adulthood, is vital. Reflect on the inheritance you aim to provide. Allianz’s annuities encompass features that enable the seamless transfer of wealth, ensuring your diligent earnings advantage your descendants.

By opting for Allianz annuities, you’re laying a foundation not merely for retirement, but for a future rich in financial autonomy. Initiating this journey today primes you for a prosperous tomorrow.

Wrapping Up Your Path to Retirement: Key Takeaways and Next Steps

Well done for taking the time to journey through this guide. Your dedication to learning about retirement choices shows your proactive attitude toward ensuring a joyful and promising future after work.

To understand retirement planning, gaining knowledge and learning how to navigate the complex process is important. Recap and plan for a financially secure future with these next steps.

The Power of Early Planning

The earlier you begin to think about retirement planning, the more time you give your investments to grow. Starting to save in your 20s or 30s can greatly benefit from compound interest. It can help your money grow significantly by the time you retire.

Understanding Fees and Charges

To benefit from Allianz’s range of products, it’s important to understand the fees involved and maximize your investments. A clear understanding helps you make informed decisions and avoid unexpected costs.

Tax Implications and Benefits

Annuities offer a unique blend of tax advantages. Understanding the tax benefits allows you to strategize your investments to maximize post-retirement income.

Tailoring for Your Needs

Annuities aren’t a one-size-fits-all solution. Customize your annuity to match your needs and goals, so your retirement plan fits perfectly with your future vision.

Trust in Stability and Innovation

With Allianz’s blend of traditional stability and modern innovation, you’re choosing a partner that’s both reliable and forward-thinking.

Next Steps

Your retirement journey is a marathon, not a sprint. You can create a better future with knowledge, patience, and good partners. In this future, you won’t just be surviving but thriving and living the life you deserve. Here’s how you can secure that future and take action right now.

Dive Deeper

Have you seen a specific Allianz product that you like the look of? Research the product further to see if it’s the right fit. Every annuity has different advantages and characteristics, so choosing the one that suits your objectives the most is crucial.

Speak to the Pros

Professional financial advice is one of the best investments you can make in your future. If you’re looking for tailored advice on retirement planning, speak to an advisor who can fine-tune your retirement strategy.

Financial products are always evolving, with new regulations and products affecting your next decision. Stay updated on market trends and new products to ensure your retirement plan remains effective for you.

Start Today

It’s never too early to start planning for your retirement. Every day, month, or year you delay retirement planning can represent potential growth opportunities missed.

The beauty of starting early is the magic of time. From the moment you invest in an annuity, it will compound, grow, and weather the ups and downs of the market. Even if you’re a bit late, every step you take today will bring you closer to a happy retirement.

Glossary: Making Sense of Common Allianz Annuity Terms

Basics of Annuities

  1. Annuity: Think of it as a bank account that gives you back your money in smaller parts over time. There are different kinds, like the ones that start right away or those that start later.

Investment Growth

  1. Accumulation Phase: The time when you’re putting money into this special account.
  2. Annuitization: Turning your saved money into regular payouts.
  3. Beneficiary: The person who gets money or benefits when the account holder dies.

From Savings to Payments

  1. Contract Maintenance Charge: A yearly cost to keep the annuity going.

Roles and Responsibilities

  1. Contract Owner: The person who has the annuity.
  2. Death Benefit: Money given when the person with the annuity dies.

Fees and Costs

  1. Deferred Annuity: An annuity that will start paying you back later.
  2. Free Withdrawal Privilege: This lets you take out some money every year without a penalty.
  3. Fixed Annuity: The best fixed annuities guarantee a set interest and amount. An Allianz fixed annuity is currently not available.
  4. Flexible Premium: This is a flexible account where you can change how much you pay.

Features and Options

  1. Immediate Annuity: An account that starts paying back right after you put in a big amount.
  2. Indexed Annuity: This one grows based on how the market does.
  3. Interest Bonus: Extra money added based on the interest you earn.
  4. Interest Rate: How fast your annuity grows when saving.
  5. Liquidity: How quick and easy it is to turn something into cash.
  6. Mortality and Expense Risk Charge: A fee covering risks. It ensures you get a minimum payout.
  7. Period Certain: A promise that payments will last a set number of years.

Additional Benefits and Terms

  1. Principal: The first big amount you put into the annuity.
  2. Protected Income Value (PIV) Bonus: Extra money added to your annuity value.
  3. Rate of Return: How much your annuity grows or shrinks in value over time.
  4. Rider: An add-on to the annuity that gives more benefits.
  5. Surrender: Taking money out before the agreed time.
  6. Surrender Charge: A cost if you take out money too soon.
  7. Traditional Death Benefit: Money given after death, based on the contract value or total amount paid minus withdrawals.
  8. Variable Annuity: This one’s value changes based on chosen investments.
  9. Withdrawal Charge Schedule: A list that tells you the cost of taking money out early.

Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.