If you're concerned about building a strong foundation for retirement income – and also would like to receive guaranteed income for life – 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:
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):
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.
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.
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.
Annual point-to-point with a cap: S&P 500® Index, Nasdaq-100® Index, Russell 2000® Index, Barclays US Dynamic Balance Index II
A fixed interest allocation is also available.
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 annual cost of the Income Benefit Rider is 1.05% of the accumulation value, deducted on a monthly basis from the accumulation value and the guaranteed minimum value (in most states). 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.
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.
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. For example, a 60-year-old client would have an initial income withdrawal percentage of 5.10% for a single life withdrawal with payout option 1, and it would increase to an 8.60% withdrawal percentage in 10 years. Lifetime income withdrawals can begin as early as age 50.
Payout option 1 gives you predictable, dependable income for life. Income option 1 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.
Payout option 2 also provides income for life – plus an opportunity for payment increases. Income option 2 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.
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.
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