Allianz Retirement Foundation Review

Senior couple enjoying a moment on a swing during retirement

Are you considering the Allianz Retirement Foundation annuity for your retirement planning? This review will examine the key features and benefits of this product from Allianz Life, aiming to provide a clear understanding of how it might enhance your financial readiness for retirement.

About Allianz Life

Allianz Life Insurance Company of North America, known simply as Allianz Life, is a key provider of retirement solutions and life insurance products. Based in Golden Valley, Minnesota, it operates as a subsidiary of Allianz SE, a major global financial services group.

Allianz Life offers a diverse range of products, including fixed and variable annuities, life insurance, and investment products like the Buffered Outcome ETFs.

The company is renowned for its fixed index annuities and has been a leader in this market in the United States. They serve over millions of customers globally and have a strong reputation for financial strength and customer service.

The company's mission emphasizes security and caring, aiming to give customers confidence and support for the future. This philosophy extends to their corporate responsibility, where they focus on sustainable business practices and community engagement.

Allianz Life Financial Rating

Rating Company

Rating

Moody’s

Aa3

S & P

AA

A.M. Best Rating

A+

Comdex

94

Allianz Retirement Foundation Highlights

7-Year Fixed Index Annuity
The Allianz Retirement Foundation is structured as a 7-year fixed index annuity, which is a key feature for those planning for retirement. This term length is particularly advantageous for a few reasons:
- Predictability: The 7-year period provides a predictable framework for growth, allowing you to plan your finances with a clear understanding of when the term will end and what benefits you can expect over this duration.
- Market-Linked Growth with Protection: During these 7 years, your returns are linked to a market index, which means you can benefit from market gains while your principal investment is protected against market losses. This offers a balanced approach to growth, minimizing risk while providing potential upside.
- Commitment Period: This fixed-term allows you to commit to a medium-term investment that is not too long, giving you the flexibility to reassess and potentially reinvest or adjust your retirement strategy at the end of the term based on your needs and market conditions.
Fee Withdrawals

This annuity may include various fee withdrawals, which are charges deducted from the annuity's balance. These fees could cover the costs associated with managing the annuity, including any rider charges or administrative fees. It's a way to ensure the product is managed effectively to secure your long-term interests.
Allianz Income Multiplier (AIM) Benefit

The annuity comes with the Allianz Income Multiplier Benefit, which can significantly enhance your retirement income under certain conditions. Should you meet the eligibility criteria, this benefit can double the income payments you receive, providing an increased financial buffer in your retirement years.
Death Benefit

The death benefit ensures that if you pass away before fully benefiting from the annuity, a specified amount will be paid out to your designated beneficiaries. This feature provides a safety net for your loved ones, offering financial support in your absence.

Allianz Retirement Foundation Overview

🔔 Important Information

Annuity Term

7 Years

Type of Annuity

Fixed Index

Interest

5.67% (fixed)

Premium Type

Flexible

Maximum Issue Age

80 years

Withdrawal Charge Schedule

6.5%, 6.00%, 5.00%, 4.00%, 3.00%, 2.00%, 1.00%

Minimum Premium

$10,000

Maximum Premium

$1,000,000

RMD

No

Market Value Adjustment

Yes

Allianz Retirement Foundation Historical Rate of Return

The hypothetical historical performance provided herein showcases the annualized return of allocation strategies, representing the investment's annual growth rate considering compounding effects. Similar analyses can be found for each account in official fixed index annuity illustrations provided by insurance carriers.

What's not reflected:
The annualized return does not encompass rider charges, strategy fees, or applicable premium bonuses.

Notes on rates:
The information presented assumes the annuities' current caps, spreads, participation rates, and other related rates, without guarantee.

No guarantees:
These actual elements are subject to change over time, resulting in potentially higher or lower outcomes. Additionally, no single index consistently outperforms in every scenario. It is advisable to consult with a properly licensed and educated annuity professional before making any decisions.

Allianz Retirement Foundation Historical Rate of Return

Fees and Charges

The Allianz Retirement Foundation ADV Annuity includes a few key fees and charges: an annual benefit charge of about 1.25% of the contract's accumulation value, and surrender charges if funds are withdrawn early.

These surrender charges start at 6.5% in the first year and taper off to 0% by the eighth year. Distributions from the annuity may also be subject to withdrawal charges and market value adjustments (MVAs).

Additionally, withdrawals are taxed as ordinary income, and, if taken before age 59½, they may incur a 10% federal additional tax.

Index Options

This annuity provides a choice of several index options to align with your financial goals, and these include:

S&P 500 Index
NASDAQ-100 Index
Russell 2000 Index

Bloomberg US Dynamic Balance Index II
Fixed Interest

Crediting Methods

The Allianz Retirement Foundation ADV annuity offers two primary crediting methods to calculate the growth on your investment:

Annual Point-to-Point with Cap: This method tracks the change in the index from the beginning to the end of the policy year. It includes a cap, which is the maximum rate of return that can be credited to your annuity for that year, regardless of how much the index actually increases.
2-Year or 5-Year MY Point-to-Point with a Participation Rate: This method involves a longer-term evaluation of index performance, either over two or five years. It uses a participation rate, which determines what percentage of the index increase is used to calculate your credited interest.

Allianz Retirement Foundation Surrender Charge Schedule

Allianz Retirement Foundation Key Features

The Allianz Retirement Foundation ADV annuity offers a range of features tailored to support flexible and secure retirement planning, and they include:

Flexible-Premium Deferred Index Annuity

This feature allows you to make contributions to your annuity during the initial three years of the policy, providing flexibility in how and when you fund your retirement savings.

Income Benefit Rider

The Income Benefit Rider enhances the annuity by offering increasing lifetime withdrawal percentages annually until withdrawals begin. This guarantees a stable income for life, with several options tailored to your financial needs.

Joint Life Option

This option is available for both single and joint life setups. It is particularly beneficial for couples, as it provides annual payout percentage increases starting at age 45, helping to keep pace with the cost of living and inflation.

Nursing Home Benefit

If the need arises for nursing home care, this benefit kicks in to help manage the increased expenses. Typically, if you're confined to a nursing home for a certain number of consecutive days (typically at least 90 days), the annuity may offer increased income payments or fee waivers to help cover these costs.

Flexible Annuity Option Rider

The Flexible Annuity Option Rider adds a layer of adaptability to your annuity payouts. This option allows you to modify your income stream as your financial needs evolve over time, offering a way to customize how and when you receive your funds according to your personal financial plan.

Pros and Cons

Allows contributions during the first 3 years
Offers several index options and fixed accounts to suit different risk tolerances
Provides increasing lifetime withdrawal percentages, ensuring income for life
Offers benefits like increased payouts if confined to a nursing home and flexible withdrawal options
Earnings grow tax-deferred until they are withdrawn, providing a tax advantage

Imposes fees for early withdrawals, decreasing over a 7-year period
Charges for optional benefits like the Income Benefit Rider
Can be complex for some users to understand all terms and options available
MVAs can decrease the amount received during withdrawals if market conditions are unfavorable
Requires a minimum initial investment of $10,000, which might be high for some

Key Takeaways

The Allianz Retirement Foundation annuity offers a thoughtful mix of flexibility, security, and growth potential, making it a compelling choice for retirees.

Its structured benefits, like the Income Benefit Rider, and various investment options cater to a wide array of financial needs and preferences, ensuring that each retiree can find a fit that supports their vision for the golden years.

So, if you're looking for a reliable tool to help secure your financial future in retirement, this annuity merits serious consideration.

About the Product

Product Name

Allianz Retirement Foundation Review

Product Type

Fixed-index

Launch Date

2017

Product Information

The Allianz Retirement Foundation annuity is a flexible premium deferred index annuity that allows contributions during the first three policy years. It offers a variety of investment options, including multiple indices and fixed accounts, tailored to different risk tolerances.

Key features include an Income Benefit Rider that increases withdrawal percentages each year until withdrawals begin, ensuring a steady income stream for life. The plan also includes a 7-year surrender charge period with a Market Value Adjustment provision and requires a minimum investment of $10,000. This annuity is designed for individuals looking for growth potential with the benefit of tax-deferred earnings and options for lifetime income.

Product Brochure

Account Types

Non-qualified account, 401k, profit sharing, IRA, pension, IRA rollover, 401a, IRA transfer, SEP IRA, KEOGH, IRA-Roth, and TSP

Not Available In

New York

Annuity Expert

Jeremiah Konger

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