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Fixed index annuities: potential plus protection

Fixed index annuities can help you accumulate money for retirement and provide guaranteed income after you retire. A fixed index annuity may be a good choice if you want the opportunity to earn indexed interest, but don’t want to risk losing money in the market.

What is a fixed index annuity?

A fixed index annuity is a contract between you and an insurance company. In exchange for the money you place in your annuity, the insurance company guarantees several benefits – including a steady stream of retirement income. And because it’s designed to help you prepare for retirement, a fixed index annuity provides certain tax advantages as well.

Six reasons to consider a fixed index annuity (FIA)

1

Accumulate for retirement

FIAs offer the potential to earn interest based on changes in an external index. Allianz annuities give you a choice of several indexes and even some exclusive index options.
2

Protect your principal

Your contract can earn interest based on an external index, but you’re not actually buying any stocks or shares of an index. This means the money in your FIA (your “principal”) is not at risk due to market losses. 
3

Grow tax-deferred

You don’t pay taxes on the interest your annuity earns until you take money out. This helps compound your interest, so the money in your contract can accumulate faster.
4

Get flexibility

Some Allianz FIAs offer riders (either built in or at an additional cost) to help you address specific needs. They also offer a variety of crediting methods and flexible options for receiving income.
5

Receive guaranteed income

Annuities are designed to provide a reliable stream of retirement income, either for a set period or for as long as you live. Some Allianz FIAs even offer you the potential to get increasing income.
6

Leave a legacy

FIAs pay your loved ones a death benefit if you pass away before you start taking scheduled annuity payments. (And, if properly structured, the death benefit is not subject to probate.)

See how fixed index annuities work.

Fixed index annuities have two phases: The first is the accumulation phase, during which your annuity can earn interest and grow tax-deferred.

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You buy a fixed index annuity.

An annuity is simply a contract between you and an insurance company. You pay the insurance company one or more purchase payments (“premium”). In exchange, you get the benefits the insurance company guarantees through your annuity contract.
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Your annuity earns interest.

During the accumulation phase, your annuity can earn interest based on the growth of an external index (we call this “indexed interest”). But because you’re not actually participating in the market, the money in your annuity is not at risk. If you prefer, you can instead earn an annual fixed rate of interest that is guaranteed by Allianz.
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Your annuity grows tax-deferred.

You don’t have to pay taxes on the interest your contract earns until you take money out of your annuity. This tax deferral can help the money in your annuity accumulate faster.

The second phase begins when you start taking income. We call this the distribution phase.

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Your annuity provides income.

After a period of time specified by your contract, you may then receive the amount allowed by your FIA contract in a lump sum, over a set period of time, or as income for the rest of your life. Some annuities even provide the opportunity for increasing income.

Is an Allianz fixed index annuity right for you?

We offer several FIAs to help address a variety of financial goals. Your financial professional can help you decide whether one of these may be appropriate for your unique needs:

Allianz Benefit Control® Annuity

Want greater access, more potential, and the possibility of income increases?
Allianz Benefit Control gives you immediate access to income, two ways to get a bonus,1 more control over how you pursue your retirement goals – plus the opportunity for income increases.
Allianz Benefit Control Annuity

Allianz 222® Annuity

Want income that has an opportunity to increase down the road?
Allianz 222 gives you two ways to receive income increases, two ways to get a bonus,1 and two ways for your beneficiaries to get a death benefit. You can start income payments after 10 contract years.
Allianz 222 annuity

Core Income 7® Annuity and its Core Income Benefit rider

Concerned about covering your core expenses over a long retirement?
This annuity and its Core Income Benefit Rider – which we include at an additional cost – automatically increase your annual withdrawal percentage beginning at age 45, until you start taking lifetime income withdrawals. Or, you can start taking income immediately after buying your contract if you’re at least age 50, or at the start of any contract year once you turn 50.
Allianz Core Income 7 annuity

Allianz 360℠ Annuity with the 360 Benefit rider

Need a balanced approach, with flexible income options?
Get a bonus1 every time your contract earns interest, until you start taking lifetime income withdrawals. Plus – with the 360 Benefit rider (included at an additional cost) – the longer you wait to take income, the greater your income payments will be. You can start taking income immediately after buying your contract if you’re at least age 50, or at the start of any contract year once you turn 50.
Allianz 360 annuity

Essential Income 7® Annuity with the Essential Income Benefit

Need a strategy to help address your essential expenses?
Two index allocation options make accumulation less complicated. You’re also guaranteed income withdrawals for life – and the longer you wait to receive income, the higher your income withdrawal percentage will be. Plus, you get the potential for increasing income through the Essential Income Benefit rider, which we include automatically for an additional cost. You can start taking income immediately after buying your contract if you’re at least age 50, or at the start of any contract year once you turn 50.
Allianz Essential Income 7 annuity

Retirement Foundation ADV® Annuity with its Income Benefit rider

Want a foundation for your retirement income?
Designed to work within an advisory platform, this product and its Income Benefit rider (which we include automatically at an additional cost) provide guaranteed lifetime income with the potential for increases. Plus, the longer you wait to receive income, the higher your income withdrawal percentage will be. You can also start taking income immediately after buying your contract if you’re at least age 50, or at the start of any contract year once you turn 50.
Allianz Retirement Foundation ADV annuity

Allianz Accumulation Advantage® Annuity

Are you focused on accumulation?

Give yourself a variety of index allocations to choose from – including some that are exclusive to Allianz – plus a fixed interest allocation. You’ll also get the principal and credited interest protection from market downturns that only a fixed index annuity can offer.

Allianz Accumulation Advantage annuity
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Frequently asked questions

Explore another Allianz annuity option.

1 Bonus annuities may include higher surrender charges, longer surrender periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don’t offer a bonus. During the contract’s surrender period, we will apply a surrender charge if the contract is partially or fully surrendered. These charges may result in a loss of indexed interest and fixed interest, interest bonus, and a partial loss of principal (premium).

Annuities are complex products, and it’s important to understand the balance between all of their features and factors. A financial professional can help you decide whether an annuity is appropriate for your needs.


Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.

With the purchase of any additional-cost riders, the contract's values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest, or earns interest in an amount less than the rider charge.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

• Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit • Not insured by any federal government agency or NCUA/NCUSIF

Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060.

This notice does not apply in the state of New York.

Product and feature availability may vary by state and broker/dealer.