How long will your retirement money last?

[Narrator] Question: How long will your retirement money last? Allianz answers.

Remember 2008? Sure you do. That was the year of the financial crisis, when the stock market lost nearly 40% of it's value, and shrank the assets that millions of baby boomers were counting on to fund their retirement. Of course, the markets rebounded. So no worries, right? Right?

Well, it's true that during the years you're saving for retirement, if the market drops, you may have time to rebuild your assets that are subject to market volatility. But once you start withdrawing your money, that's when market volatility can have a big impact on how long your assets will last, and how comfortable you can live in retirement.

One factor in how big an impact is your sequence of returns. That's the year-by-year returns that your retirement assets continue to experience while you're drawing on them for retirement income.

Here are a couple of examples: Say you're retiring with a nest egg of a million dollars. And you plan to withdraw $50,000 per year, with a slight increase every year for inflation. Meanwhile your remaining asset is still invested, and still subject to the ups and downs of the market. Of course, we can't predict those ups and downs, your sequence of returns.

[On-screen disclosure] This example is shown for illustrative purposes only and is not guaranteed. [End of on-screen disclosure]

But, let's say that in your first year of retirement, you get a really good return, and the next year you get another positive return. Not as good as your first year, but still positive. Then in year three, well a little less. And in year four, ouch, the market drops and you take a loss.

[On-screen disclosure] Chart assumes a $1,000,000 starting balance with an annual $50,000 withdrawal (inflation-adjusted by 3.5% per year). This is a hypothetical example and is not intended to project the performance of any specific investment or index. It is not possible to invest directly in an index. If this were an actual product, the returns may be reduced by certain fees and charges. Withdrawals are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax. [End of on-screen disclosure]

Now with compounding, you'll average a good positive return over those four years, and that's what you want right? So let's keep repeating that sequence of returns in the exact same order until your annual withdrawals have completely used up the asset. In this example, that's 38 years of income. But, what would have happened if you would have started withdrawing money in a down market?

To find out, let's take those same four numbers, and this time we'll reverse the order. You still get the same compounded average, but this time you're starting out with a significant loss, then an okay gain, then a better gain, then a really good gain. And, as before, we'll keep repeating that sequence until your annual withdrawals have completely used up the asset. But in this example, it happens about 13 years sooner. You'd have lost 13 years of income, and only because you got the same returns in a different order.

[On-screen disclosure] Chart assumes a $1,000,000 starting balance with an annual $50,000 withdrawal (inflation-adjusted by 3.5% per year). This is a hypothetical example and is not intended to project the performance of any specific investment or index. It is not possible to invest directly in an index. If this were an actual product, the returns may be reduced by certain fees and charges. Withdrawals are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax. [End of on-screen disclosure]

Of course, there's no way to predict the order of your returns, or whether it will be an up market, a down market, or a flat market when you start your retirement. But one solution could be adding an annuity to your portfolio. A fixed index annuity or a variable annuity with an income benefit can provide you with an income that’s guaranteed, no matter what’s happening in the market or how long you live, through a built-in feature or a rider that’s available for an additional cost. Annuities have ways to potentially grow your money too. A fixed index annuity gives you the opportunity for accumulation without the risk of losing money in the market. With a variable annuity, you have market growth potential that’s based on investment options you choose. Variable annuities are subject to investment risk, including possible loss of principal. 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.

[On-screen disclosure] Annuities are designed to meet long-term needs for retirement income. They provide tax-deferred growth potential, a death benefit for beneficiaries during the accumulation phase, and a guaranteed stream of income during retirement. Variable annuity protection benefits are provided through additional-cost riders. Additional-cost riders will reduce contract values. [End of on-screen disclosure]

The guaranteed lifetime income and accumulation potential of an annuity can reduce the impact of an unfavorable sequence of returns. And, every additional year that your assets last can mean fewer financial worries and a more consistent level of comfort.

Yes, a long retirement is good. But it's even better when you have the money to enjoy it.

Ask your financial professional for complete information about an annuity, including risks, fees, expenses and investment objectives. You can also learn more about annuities at AllianzLife.com or AllianzLife.com/New-York.

For complete information about fixed index annuities, ask your financial professional for a contract or Statement of Understanding that outlines the risks, fees and expenses, as well as other information.

For more complete information about variable annuities and variable investment options from Allianz or Allianz Life of New York, ask for a prospectus from your financial professional or Allianz Life Financial Services, LLC, 800.624.0197. The prospectuses contain details on investment objectives, risks, fees and expenses, as well as other information about the variable annuity and variable investment options, which you should carefully consider. Please read the prospectuses thoroughly before sending money.

For complete information about fixed index annuities, ask your financial professional for a contract or statement of understanding that outlines the risks, fees and expenses, as well as other information. For more complete information about variable annuities and variable investment options from Allianz or Allianz Life of New York, ask for a prospectus from your financial professional or Allianz Life Financial Services LLC, 800-624-0197.

The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable investment options, which you should carefully consider. Please read the prospectuses thoroughly before sending money.

[On-screen disclosures]

This content is general information for educational purposes, and is not intended to constitute fiduciary advice. Please consult your financial professional for a specific recommendation about purchasing this product.

Withdrawals are subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10% federal additional tax.

Guarantees are backed by the financial strength and claims-paying ability of the issuing company. Variable annuity guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

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 (or gains) in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge.

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. If your financial professional does not hold the appropriate registration, please consult with your own broker/dealer representative or investment advisor representative for guidance on your securities holdings.

Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. In New York, products are issued by Allianz Life Insurance Company of New York, 1633 Broadway, 42^nd Floor, New York, NY 10019-7585. Variable products are distributed by their affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297.

Only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance in the state of New York.

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

• 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

Brought to you by:

Allianz Life Insurance Company of North America

Allianz Life Insurance Company of New York

[End of on-screen disclosures]