How Retirement Foundation ADV® works

A foundation for lifetime income

If you're concerned about building a strong foundation for retirement income – and also would like to receive guaranteed income for life – Allianz Retirement Foundation ADV® Annuity may be a good choice for you.

Retirement Foundation ADV Annuity starts with the typical features of fixed index annuities – including principal protection from market downturns, the potential for tax-deferred growth, options for lifetime retirement income, and a death benefit for your beneficiaries.

But it doesn’t end there. While you’re saving for retirement, Retirement Foundation ADV offers:

  • simplified indexing with annual point-to-point crediting,
  • powerful indexed interest potential through 4 external market indexes plus a fixed interest option.

And when you’re ready to start receiving income, the Retirement Foundation ADV Annuity with its built-in Income Benefit rider (automatically included at an additional cost):

  • gives you increasing lifetime withdrawal percentages every year until you begin withdrawals, and
  • guarantees income for life through your choice of lifetime withdrawals, predictable payments, and payments with the opportunity to increase. Both options are available for single or joint lives.

Plus, Retirement Foundation ADV Annuity has a seven-year withdrawal charge period – so you can access the money in your contract without withdrawal charges after only seven years.

Issue age and minimum

You must be between the ages of 0-80 in order to purchase Retirement Foundation ADV.

The minimum initial premium payment is $10,000 for qualified and nonqualified money.

Rates

The participation rate is 100% guaranteed for the life of the contract. This means we use the entire percentage of index change when we calculate the indexed interest rate. Caps would still apply. The cap is the maximum percentage of index change we use for a specified time period to determine how much interest we credit to your annuity in a given contract year.

Call your Allianz financial professional for current caps and interest rates.

Allocation options

Annual point-to-point with a cap: S&P 500® Index, Nasdaq-100® Index, Russell 2000® Index, Bloomberg US Dynamic Balance Index II

A fixed interest allocation is also available.

Income or accumulation benefits

The Income Benefit rider is included with the Retirement Foundation ADV Annuity for an additional charge. It offers increasing income withdrawal percentages (beginning at age 45) until lifetime withdrawals begin or annuitization is started. It also offers a choice of two income payment options: predictable payments and payments with the opportunity to increase. Once lifetime income withdrawals begin, access to penalty-free withdrawals is no longer available.

The first contract year’s annual charge for the Income Benefit rider is 1.25% of the contract’s accumulation value. After the first contract year, the annual Benefit rider charge can change, but it will never be greater than the maximum Benefit rider charge of 1.25%. The rider charge will continue for the life of the contract even after lifetime income payments have begun.

Annual payout percentage increases apply to ages 45 and above. Lifetime benefit withdrawals cannot begin before age 50.

Access your money

With our penalty-free withdrawal option, after the first contract year, up to 10% of the contract’s premium paid can be withdrawn each contract year, as long as the money is withdrawn after the contract anniversary following the most recent premium payment; maximum is cash value.

Retirement Foundation ADV has a seven-year withdrawal charge period (6.5%, 6.0%, 5.0%, 4.0%, 3.0%, 2.0%, 1.0%, 0%). The withdrawal charge percentage will decrease 1/12 of 0.5% on each of the first 12 monthiversaries. On each subsequent monthiversary, the withdrawal charge will decrease by 1/12 of 1%. On day one of contract year 8, it will be zero.

Market value adjustment (MVA): If you take a partial or full withdrawal (not including 10% free withdrawals and required minimum distributions), it will be subject to an MVA during the withdrawal charge period. An MVA will also apply if the contract is annuitized prior to the sixth contract year or if annuity payments are taken over a period of less than 10 years.

The MVA reference rate is a component used to calculate the MVA. For additional information on MVAs and their calculation, see the contract Statement of Understanding. 

Payout options

With the Income Benefit rider, beginning at age 45, the contract's lifetime withdrawal percentages will automatically increase each year you keep the contract in deferral, until income payments begin. The base payment percentage is determined by your age at the time you purchase the annuity. Lifetime income withdrawals can begin as early as age 50.

Level Income gives you predictable, dependable income for life. This option may be a good choice if you want the reassurance of knowing exactly how much income you'll receive, and if you want a guaranteed stream of income that you can't outlive.

Increasing Income also provides income for life – plus an opportunity for payment increases. This option offers a smaller payment up front, but it has the potential to increase each year by the interest rate credited to your allocation options in your contract. On every contract anniversary, your annual maximum withdrawal amount (maximum income payment) will be recalculated to reflect the interest rate from selected allocations.

You can choose to receive annuity payments based on your choice of several annuity options. If you use a traditional annuitization option after five contract years, your annuity payments are based on your accumulation value. These annuity options can have certain tax advantages; however, you would no longer receive the benefits of the Income Benefit rider, including the increasing withdrawal percentages.

Death benefit

Your beneficiaries can receive the greatest of the full accumulation value, cumulative withdrawal amount, net premium, or the guaranteed minimum value as a lump sum or as annuity income payments over at least five years.

Current MVA reference rate: 1.48 % as of 7/9/2020

Uses the yield of the Bloomberg Barclays US Intermediate Corporate Bond Index.

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Ready to take the next step?

Because annuities are complex products, Allianz Retirement Foundation ADV is available exclusively through financial professionals. Ask your financial professional if it may be a good fit as part of your overall portfolio.

Questions to consider

Talk to your financial professional to see if Retirement Foundation ADV is appropriate for you. Here are some questions they can help answer:

  1. How are the annuity’s principal and any credited interest protected?
  2. How can this product provide income for life and assist with the rising cost of living?
  3. What backs up any guarantees available with this product?
  4. What else should I consider that might impact my retirement?
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Purchasing an annuity within a retirement plan 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.

Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

Standard & Poor’s 500® index (S&P 500®) is comprised of 500 stocks representing major U.S. industrial sectors. The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. S&P® and S&P 500® are trademarks of S&P and Dow Jones®, Dow Jones Industrial AverageSM, DJIA, and The Dow are trademarks of Dow Jones. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America (“Allianz”). The S&P 500 and Dow Jones Industrial Average (DJIA) are products of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Allianz. Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates make any representation regarding the advisability of investing in such product.

The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market, based on capitalization. The Nasdaq-100®, Nasdaq-100 Index, Nasdaq®, and OMX® are registered trademarks of NASDAQ OMX Group, Inc. (which with its affiliates are the Corporations) and are licensed for use by Allianz Life Insurance Company of North America. The product(s) have not been passed on by the Corporations as to their legality or suitability. The product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

Russell 2000® Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index.

The Russell 2000 Index is a trademark of Russell Investments and has been licensed for use by Allianz Life Insurance Company of North America. The product is not sponsored, endorsed, sold, or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the product.

The Bloomberg US Dynamic Balance Index II is comprised of the Bloomberg Barclays US Aggregate RBI Series 1 Index, the S&P 500® Index, and cash, and shifts weighting daily between them based on realized market volatility. The Bloomberg Barclays US Aggregate RBI Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Bloomberg Barclays US Aggregate Bond Index. The Bloomberg Barclays US Aggregate Bond Index is comprised of Bloomberg Barclays US investment-grade, fixed-rate bond market securities, including government agency, corporate, and mortgage-backed securities.

The Bloomberg US Dynamic Balance Index II (a "Bloomberg Index") is the property of Bloomberg Index Services Limited and is derived and calculated based on the S&P 500 Index under license from S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices"). S&P® is a registered trademark of Standard & Poor's Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. S&P 500® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use to Bloomberg Index Services Limited. Neither S&P Dow Jones Indices, its affiliates nor their third party licensors sponsor or promote the Index and no such party shall have any liable in connection with the Bloomberg Index.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays as it relates to the Bloomberg Barclays Indices, own all proprietary rights in the Bloomberg US Dynamic Balance Index II and the Bloomberg Barclays Indices (collectively the “Indices”). Neither Bloomberg nor Barclays is affiliated with Allianz Life Insurance Company of North America (“Allianz”), and neither approves, endorses, reviews or recommends the Allianz product. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Indices, and neither shall be liable in any way to Allianz, investors in the Allianz product or other third parties in respect of the use or accuracy of the Indices or any data included therein.

• 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. (C95493-MVA, R95374-01-MVA)

Product and feature availability may vary by state.