Woman sitting on dock

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.

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 accumulation phase, during which your annuity can earn interest and grow tax-deferred.

MoneyMoney

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.
StocksStocks

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.
Line GraphLine Graph

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.

ReceiveReceive

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 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 seven index allocations to choose from – including some that are exclusive to Allianz – plus five crediting methods and a fixed interest allocation. Plus, 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

Allianz Legacy by Design℠

Need a strategy for your unneeded RMDs?
Two annuities combine in a single product to satisfy your required minimum distributions (RMDs), while potentially enhancing your financial legacy with a Death Benefit Bonus.
Allianz Legacy by Design
QuestionQuestion

Frequently asked questions

What is the best age to buy an annuity?

Many people buy annuities between ages 40 and 60, but the answer depends on your financial goals. If your main goal is saving enough for retirement, buying a fixed index annuity when you’re still a few years away from retirement may be a good choice. That’s because FIAs are designed to help the money in your contract grow tax-deferred over time. And the younger you are when you buy your annuity, the longer your money has to grow tax-deferred.

Are fixed index annuities appropriate for retirement?

Fixed index annuities are designed to protect the money you place in the contract from market volatility. Although FIAs may credit interest based on changes in an external index, you’re not actually participating in the market – so the principal in your annuity is never at risk due to market losses. Fees and charges may still reduce your annuity’s value, however.

What happens to your fixed index annuity if you die?

That depends on many factors, including whether you have started taking income from your annuity. Most annuities let you name a beneficiary. If you have not yet started taking regular income payments from your annuity (we call this “annuitization”), the money that’s left in your annuity will pass on to your beneficiary when you die. But some annuities may have different terms. That’s why it’s important to read and understand the contract before you buy any financial product, including an annuity.

What does “principal protection” mean?

It means the money in your fixed index annuity contract is not at risk due to market losses. Although FIAs may credit indexed interest based on changes in an external index, you’re not actually participating in the market – so the principal in your annuity is never at risk due to market losses. Fees and charges may still reduce your annuity’s value, however.

What is indexed interest?

Simply put, it’s interest your contract earns based on positive changes in an external index. We track the performance of one or more indexes you select, and if the return is positive, you have the opportunity to earn indexed interest. But remember that with fixed index annuities you’re not actually participating in the market – so the principal in your annuity is never at risk due to market losses.

What is an allocation option?

An allocation option is an index combined with a crediting method.

How is indexed interest calculated?

Indexed interest is determined through a combination of index allocation options and crediting methods. Every contract year, you can place your cash value in one or more allocation options, which track the performance of an external index. If the external index has a positive result, we then use a crediting method – which is a formula to determine how much indexed interest your contract will earn. Because no single allocation or crediting method performs best in all situations, your financial professional can help you determine which combination may fit your financial goals.

Explore other Allianz annuity options.

Index variable annuities
An index variable annuity (IVA) may be a good choice if you want the opportunity to participate in market gains, but still want a level of protection against market downturns.
walking on beach
Variable annuities
A variable annuity offers market growth potential based on the investment options you choose. They may be a good choice if you’re willing to tolerate some market risk in exchange for growth potential.
couple walking outdoors

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.


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.

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