5 ways an annuity can help strengthen your retirement savings strategy

While clients are working, saving for retirement is often a top priority. According to the 2026 Annual Retirement Study from the Allianz Center for the Future of Retirement®, 69% of Americans say it’s one of their main financial priorities.

Yet many still feel behind. In fact, the majority of Americans (57%) who don’t feel empowered to retire on their own terms say it is due to not having enough saved.*

They’re right to focus on it. The accumulation phase is critical to long-term financial stability, but it comes with competing priorities. Clients are often weighing how much to save, what to spend, and how much risk to take.

For financial professionals, this creates an opportunity to reframe the conversation. It’s not just about saving more. It’s about helping clients structure their retirement savings approach in a way that balances growth, risk, and confidence over time.

That’s where annuities can play a role. If you haven’t looked at annuities recently, you can brush up on the basics here. While there are different types of annuities to support various client goals, fixed index annuities (FIAs) and registered index-linked annuities (RILAs) can offer features that support clients during accumulation.

Here are five ways annuities can support clients during their accumulation years:

1

Growth potential without full market exposure

Many Americans think they need to be heavily invested in the market in order to achieve their savings goals. Our study shows 44% believe they need to keep nearly all of their retirement savings in the stock market so that they don’t fall behind.* But that mindset can potentially leave them overexposed to risk.

Accumulation-focused FIAs offer a different approach. They provide growth potential tied to the performance of an external market index with guarantees against the loss of principal and credited interest. Additionally, RILAs offer indexed return potential with varying levels of protection from market downturns. As part of a diversified strategy, these types of products can serve as growth-oriented components within a portfolio.

2

Reducing sequence-of-returns risk as retirement approaches

The closer someone gets to retirement, the less time there is to recover from a market downturn. More than half of Americans (57%) say they are hesitant to take risks with their investments because they cannot afford to lose anything saved, and 59% worry that having nearly all of their retirement savings in the stock market would make them vulnerable to losing too much money.*

Adding an FIA or RILA to a portfolio can help address this concern by providing a level of protection against market declines during the critical years before retirement.

3

Using tax-deferred growth for accumulation efficiency

One often overlooked benefit of annuities is tax deferral. Earnings on nonqualified annuities are not taxed until they are withdrawn, giving other portfolio investments more time to potentially compound interest.

For clients who have already maxed out other tax-advantaged accounts, this can be an additional way to build savings more efficiently over time.1

4

A smoother ride through market volatility

Market volatility doesn’t just affect portfolios, it affects big decisions. More than one-third of Americans (34%) say they typically withdraw money from investments to avoid further losses when the market experiences a significant drop.* These reactions can undermine long-term plans.

By combining accumulation potential with a level of protection – and, in some products, features that allow clients to lock in index gains during a crediting period2 – annuities can help reduce the impact of market swings within the protected portions of a portfolio.

5

Aligning portfolios to your clients’ risk tolerance

There’s a notable difference between what clients say they want and how they are currently invested. While 74% would prefer products that help protect against large losses – even if it means more modest gains – 58% say their current strategy is still focused primarily on maximizing returns.*

Not every client has the same relationship with risk, and annuities can reflect that. With options ranging from FIAs that offer 100% protection of principal and credited interest from market downturns3, to RILAs that allow for a defined level of loss in exchange for greater growth opportunities, annuities can be tailored to where a client falls on the risk spectrum, whether that's conservative, growth oriented, or somewhere in between.

If annuities are not part of the conversation, it may be worth revisiting their role. When used appropriately, they can help address key client concerns around risk, growth, and confidence in their financial plan, especially during the accumulation years.

*Allianz Center for the Future of Retirement® conducted an online survey, the 2026 Annual Retirement Study, in January 2026 with a nationally representative sample of 1,000 respondents age 25+ in the contiguous U.S. with an annual household income of $50K+ (single)/$75K+ (married/partnered) OR investable assets of $150K+.

The Allianz Center for the Future for Retirement® produces insights and research as a part of Allianz Life Insurance Company of North America.

1 Purchasing an annuity within a retirement plan or IRA that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity's features other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan.

2 Exercising a lock may result in a credit higher or lower than if the lock had not been exercised.

3 While FIAs offer protection of principal and credited interest from market downturns, fees or other charges may reduce the contract value.

Investment strategies, such as diversification, do not ensure a profit or protect against loss.

Registered index-linked annuities (RILAs) are subject to investment risk, including possible loss of principal. Investment returns and principal value will fluctuate with market conditions so that contract value, upon distribution, may be worth more or less than the original cost.

Distributions may be subject to a withdrawal charge. Distributions are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax.

Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company. Registered index-linked annuity guarantees do not apply to the performance of the variable subaccount(s), which will fluctuate with market conditions.

Life insurance and annuities are issued by Allianz Life Insurance Company of North America (Allianz). Registered index-linked annuities are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com

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

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

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