How Allianz Retirement Advantage works
Allianz Retirement Advantage has three account options – two into which you
can allocate money. First, you choose either the Heritage Account or Portfolio Choice
Account if you are purchasing a nonqualified contract. Qualified contracts automatically
include only the Heritage Account.
Then, you have the option to place some – or all – of your money
into the Retirement Protection Account, which is included in all contracts and offers
more robust protection benefits.
Allianz Retirement Advantage has no withdrawal charges, and money can be transferred
to/from the Retirement Protection Account, which means you have immediate and continued
access to the money in both your accounts, should an unexpected need arise.
Please keep in mind that any withdrawal or payment from your contract may be subject
to ordinary income tax and, if taken before age 59½, may be subject to a 10% federal
additional tax. Transferring or withdrawing money from your Retirement Protection
Account will reduce your guaranteed values (including lifetime income) and you will
have incurred higher fees on the amount you are transferring or withdrawing without
receiving the benefits of the account.
Available on both qualified and nonqualified contracts, the Heritage Account offers
a death benefit and more than 20 investment options. It may be a good choice if
basic legacy protection is important to you. Annual account fee: 0.80%2
Portfolio Choice Account
Available on nonqualified contracts only, the Portfolio Choice Account offers approximately
80 investment options in virtually all asset classes. It may be a good option if
tax-deferred growth potential and investment performance are your primary goals.
Annual account fee: 0.30%3
Retirement Protection Account1
Automatically included in both qualified and nonqualified contracts, the Retirement
Protection Account provides lifetime income through withdrawals, as well as a death
benefit guarantee. It may be a good choice if you want to receive guaranteed lifetime
income and are looking for enhanced protection for your beneficiaries.
Annual account fee: 1.00% single/1.15% joint4
Money can be transferred into the Retirement Protection Account prior to the earlier
of starting your Lifetime Income Payments or the older covered person/older owner
reaching age 81.
1Allocation rules and quarterly rebalancing apply.
2Calculated as a percentage of the Heritage Base (total purchase payments
allocated to the Heritage Account adjusted for withdrawals and transfers). The Heritage
Account fee is subject to change quarterly, but will never be less than the minimum
of 0.25% or exceed the maximum of 1.75%. The account fee cannot increase/decrease
more than 0.25% in any 12-month period.
3 Calculated as a percentage of each Portfolio Choice Account investment
option’s net asset value.
4Calculated as a percentage of the Benefit Base (greater of Quarterly
Anniversary Value or Retirement Protection Account value). The Quarterly Anniversary
Value is equal to the highest quarterly Retirement Protection Account Value adjusted
for subsequent purchase payments, transfers and withdrawals. The Retirement Protection
Account fee is subject to change quarterly, but will never be less than the min:
0.25%/max: 1.75%. The account fee cannot increase/decrease by more than 0.25% in
any 12-month period.
Investing in a variable annuity may be the answer for part of your overall retirement
strategy. A variable annuity combines the potential for long-term growth through
market participation with tax deferral, death benefits, and living guarantees.
Variable annuities are subject to investment risk, including loss of principal,
and contract values fluctuate daily. Investment returns and principal value will
fluctuate with market conditions so that units, upon distribution, may be worth
more or less than the original cost.