Americans are increasingly worried about their money lasting their lifetime – in fact, 67% say they worry more about running out of money than about death (a 10% rise to the same question over the last five years).
And Americans are finding it difficult to allay that fear. Among the results of the 2026 Annual Retirement Study1 from the Allianz Center for the Future of Retirement®, 65% say the inconsistency of retirement expenses makes it challenging to plan for a stable financial future.
When expenses are unpredictable, having flexible access to funds can make a meaningful difference.
But with indexed universal life insurance in a retirement strategy, financial professionals can help clients stay on track even when retirement doesn’t go according to plan. Along with its primary purpose in providing a death benefit to loved ones, IUL can also provide accumulation potential. A policy’s cash value can be a source for supplemental income, with principal protection and options for accessing any available funds (through policy loans and withdrawals2) when needed.
Many clients are concerned about having enough income in retirement. The majority of Americans (62%) say they aren’t saving as much for retirement as they would like. When unexpected expenses arise, the cash value of an IUL policy can help.
IUL offers the potential to accumulate value on a tax-deferred basis, through fixed interest or interest based on the performance of an external index. Any available cash value can be accessed through policy loans or withdrawals and used to help supplement retirement income or other financial needs, as well as provide flexibility to manage changing expenses.
Americans are also anxious about market volatility and willing to trade upside for stability. Nearly three in four (74%) would rather have financial products that protect against major losses, even if it means giving up bigger gains.
While IUL’s accumulation potential is based on the performance of a selected index, it includes features designed to help protect against market losses. This level of protection can help preserve accumulated assets and keep an overall financial strategy on track.
Two in three (66%) worry that taxes will significantly reduce the amount of money they are able to spend in retirement. That’s why diversifying assets across tax asset classes can be an important part of a retirement strategy.
IUL can complement a tax-diversification strategy. The cash value grows tax-deferred and may allow for income-tax-free access to the assets. In a changing tax environment, this flexibility can be a key advantage. IUL can help clients manage taxable income withdrawals in retirement using policy loans and withdrawals against their policy’s available cash value, potentially preserving more of a client’s traditional retirement assets for income. Clients using a loan strategy should be aware that there is no guarantee that a policy will earn sufficient cash value to support a loan strategy.
Health care costs are major sources of uncertainty. 61% don’t have any idea what their health care costs will be in retirement or how to pay for them.
When needed, loans and withdrawals from an IUL policy’s available cash value can mean a potential source of funds to pay for large, unplanned expenses. This may reduce the need to liquidate other assets and could help protect a client’s long-term financial goals.
Unexpected events can disrupt even the most carefully built plans. IUL’s death benefit is designed to help protect beneficiaries financially after the insured’s death by replacing lost income, offering liquidity, and providing another layer of financial security (and is generally paid to the beneficiary income-tax-free).
How you plan for retirement and how it actually happens can vary in great and small ways. With IUL as part of a holistic retirement strategy, you have a risk management solution that can add flexibility, resilience, and accumulation potential for various financial needs in the years ahead.
Our 2026 Annual Retirement Study has the details – including where financial professionals can provide support.
1 Allianz Center for the Future of Retirement® conducted the 2026 Annual Retirement Study in January 2026 with a nationally representative sample of 1,000 respondents age 25+ with an annual household income of $50K+/$75K+ (single/married) OR investable assets of $150K+.
The Allianz Center for the Future of Retirement® produces insights and research as a part of Allianz Life Insurance Company of North America.
2 Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Withdrawals in excess of premiums paid will be subject to ordinary income tax. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. If a policy is a modified endowment contract (MEC), policy loans and withdrawals will be taxable as ordinary income to the extent there are earnings in the policy. If any of these features are exercised prior to age 59½ on a MEC, a 10% federal additional tax may be imposed. Tax laws are subject to change, and you should consult a tax professional.
Clients using a loan strategy should carefully monitor policy values to help prevent a policy lapse and potential tax consequences.Indexed universal life insurance (IUL) provides a death benefit that is generally paid income tax-free to beneficiaries, and the opportunity to build accumulation value.
IUL requires qualification through health and financial underwriting.
IUL is not a source for a guaranteed stream of income in retirement.
Allianz Life Insurance Company of North America (Allianz) does not provide financial planning services.
Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company.
Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060.
For financial professional use only – not for use with the public.
