By: Linsey Knerl, for Allianz
Steps to help plan for
in an uncertain world
What to know about annuities.
Source: Getty Images – posed by model
Whether you’re retiring in a few years, or a few decades, annuities can play a special role in reducing risk and helping you prepare for receiving income in retirement. Here’s what you should know about this unique retirement solution.
You can’t see the future.
Allianz is here to give you the tools you need to meet it head-on, to help you have a more comfortable retirement — no matter what life brings.
Discover the many
retirement options available
from Allianz Life by visiting www.LongLiveRetirement.com.
Annuities are issued by Allianz Life Insurance Company of North America. Guarantees are backed by the financial strength and claims paying ability of the issuing company. Distributions are subject to ordinary income tax and if taken prior to 59 1/2 an additional federal tax. Any transaction that involves a recommendation to liquidate a securities product, including those within an IRA, 401(k), or other retirement plan for the purchase of an annuity or for other similar purposes, can be conducted only by individuals currently affiliated with a properly registered broker/dealer or registered investment advisor.
What is an annuity?
While there are many types of annuities to choose from, a fixed index annuity (FIA) is a contract between you and the issuing insurance company that can supplement traditional retirement accounts with several guaranteed benefits - including a steady stream of income.
Know Your Risks
What future risks to your retirement security should you consider? Whether it is health expenses, tax changes or the death of a spouse, addressing all possible retiremen t challenges is key.
The bills you have now aren’t likely to go away in retirement and may be compounded by new health expenses or inflation. Identify those expenses that are considered “essential” now, and plan for a stable and reliable method of income to cover them in retirement.
Identify your income sources
Where will you get money from when you retire? Count all sources and understand how Social Security will play a role. (Hint: It may not cover as much as you think it will.) Non-working spouses should consider how they will plan for retirement in the absence of their working spouse and what will happen to retirement savings upon the death of that partner.
Look for gaps
With your expenses counted and your income listed, you can now see if there are any holes in your retirement plans. Be honest about gaps. This is the first step to getting real about your retirement strategy.
Even if you consider yourself financially savvy, recent changes to tax code and retirement solutions could leave you without all the facts to plan for your own retirement and the purchase of an annuity is an important financial decision. Consider this a great time to have a full discussion with a financial professional that has experience with annuities.
No shares to buy or reinvest because the contract does not directly invest in any equity or fixed investments
Not at risk due to losses in the stock market
Offers a death benefit for loved ones
May include an optional lifetime withdrawal benefit
Several options and riders to choose from (may be offered at an additional cost)
Is a fixed index annuity right for you?
One way to know is by using the Value of Income Planning process. Take these steps to create the retirement plan fit for your individual lifestyle.
Avoid an “either/or” approach
FIAs are designed to complement the tools you already use, such as 401(k) plans and workplace pensions. Moving even a small amount of your nest egg to one may create a different kind of reassurance, even as markets fluctuate wildly.
According to the Allianz Life 2021 Retirement Risk Readiness Study, fewer BIPOC respondents are getting professional help with their finances than white Americans
The 2021 Q3 Allianz Life Quarterly Market Perceptions Study revealed that one in seven Americans say they are worried they will be unable to afford the lifestyle they want in the retirement due to the rising cost of living.
According to the Social Security Administration's Fast Facts and Figures, in 2019, 55% of adult Social Security beneficiaries were women.
The 2021 Q3 Allianz Life Quarterly Market Perceptions Study found that only 57% of Americans say they have a financial plan in place to help address the rising cost of living.
55% of women and 45% of men are Social Security beneficiaries.
43% don’t have a plan
57% have a plan
income in retirement
By: Linsey Knerl, for Allianz Life
Steps to help plan for
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