A foundation for lifetime income


You worked hard. You saved for retirement. What could possibly go wrong?

OutliveA person standing next to the bars of a bar graph

You can outlive your savings.

  • A man turning 65 in 2016 can expect to live to 84.1.1
  • A woman turning 65 in 2016 can expect to live to 86.6.1
  • The probability at least one member of a couple (both 65 years old today) will live to age 85 is 82.5%; the probability that one spouse or even both live to age 90 is three in five.2

That's why it's important to have some income you can't outlive – no matter how long you live.

Cohort Life Expectancy Table, "The 2017 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Fund," 2017.
Insured Retirement Institute (IRI), Fact Book 2017.

PiggyA broken piggy bank

Living can become more expensive.

Inflation is difficult to predict in the short term – but the long-term trend is clear. To buy the same things $100 bought 20 years ago, you need approximately $153 today. And you can easily assume that 20 years from now, the same items will be even more expensive. Historically, the average U.S. inflation rate has been 3.1% over the last 100 years.3 - but some costs, health care in particular, are likely to rise even faster than the general inflation rate.


MoneyPaper currency with a down arrow

You could lose money when the markets go down.

Interest rates, inflation, and recession; politics and international crises; natural disasters and terrorism – these can all cause the markets to drop. And the closer these drops occur to your retirement, the less time you’ll have to rebuild your savings before you start withdrawing them for income. Diversifying your investments can lessen the damage, but not eliminate it.

ClockA stop watch

If the markets are down when you start your retirement, your money could run out years sooner.

Higher returns in the early years of your retirement can help your asset last years longer than if you receive lower returns or losses in the early years. It’s as simple as the difference between taking $10 from a pile of $100 and taking $10 from a pile of $90. The second leaves you with less money remaining to grow when the market goes up again.

That’s why annuities through ReadySet SM offer protection from market losses during the years when you’re withdrawing your assets for income.

An Allianz Life fixed index annuity can help to address all of these issues – by protecting a portion of your retirement savings from market loss.

A Fixed Index Annuity is a contract between you and an insurance company designed to help you reach your long-term financial goals.

A fixed index annuity gives you benefits and guarantees, including:

  • Tax deferral: Any interest your annuity earns is tax-deferred until you withdraw it for income. That can leave more money in your annuity to grow for future retirement income.
  • Index interest potential: With a fixed index annuity, you earn interest based on positive performance of one or more market indexes of your choice or a fixed rate of interest.
  • Protection: Because your money is not actually invested in the market, your annuity can never lose value due to drops in the market.

Tax Index Protection

An Allianz Life fixed index annuity also provides you with guaranteed lifetime income.

Along with helping you build savings for retirement, a fixed index annuity provides you with several options for how you receive future income – including guaranteed lifetime withdrawals that you can’t outlive – no matter how long you live.

And you can choose income that has the potential to increase throughout your retirement (and never decrease due to drops in the market).

Annual reset makes it possible to earn interest when the markets rise and never lose value due to market drops.

Annual reset is a unique feature of fixed index annuities. With it, every year is a new year – your annuity doesn’t have to make up any previous year's index losses before you can start earning new interest.

At the end of each contract year, we lock in your ending contract value (which is equal to your purchase price plus any credited interest, and minus withdrawals or fees). This contract value can never be reduced due to a loss in the market (though we will deduct fees and any withdrawals). The following year, you’ll be credited zero interest (if the index stays the same or shows a loss) or positive interest (if the index value goes up).

  1. After two years of increases, the market index drops in year 3 – but your contract value is locked in at the previous year’s value so it holds steady (minus the annual fee and assuming no withdrawals).
  2. In year 4, the market index heads up again – but the index does not have to make up previous losses before your annuity can earn additional interest.


This hypothetical example is provided for illustrative purposes only and does not reflect the 1.05% annual fee and potential changes associated with withdrawing money during the first seven years of the contract. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge.

So why can’t you get these benefits through your own investing?

Simply put, an annuity is an insurance product that pools risk, similar to how life insurance pools risk – except here, we’re using pooled sums of money and risk management expertise to manage our goal of consistent growth and smooth out the impact of market volatility. Our in-house risk management enables us to react to market turbulence and even extreme financial crises as they occur – not just at the end of the day. In addition, only an insurance company can offer you longevity protection through income you can't outlive, no matter how long you live.

Annuities through ReadySetSM are backed by the financial strength of Allianz Life Insurance Company of North America (Allianz Life®).

Allianz Life is a leading provider of financial products that help people pursue their financial and retirement goals. In fact, Allianz Life has been the #1 provider of fixed index annuities for 17 of the last 18 years.1

1 Wink's Sales & Market Report is published by Wink, Inc., 4Q 2017.

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