Allianz Retire+ raises the bar, introducing guaranteed income for life
· AGILE delivers a guaranteed income for life that will never reduce
· Increased flexibility with access to capital at any time
· Full advice platform integration with partnership announcements to follow
· Embedded within superannuation funds and account-based pensions
Sydney, Australia (Monday, 20 February 2023) Allianz Retire+ announces the launch of its new retirement income product, Allianz Guaranteed Income for Life (AGILE) available in early March.
AGILE is a next generation retirement solution that delivers a guaranteed income for life, will provide full advice platform integration opportunities and can be embedded within superannuation funds and account-based pensions. The solution also enables advisers to construct retirement strategies with certainty, years in advance of a client’s retirement.
Retirement Income Covenant gives green light to innovation
Allianz Retire+ recognised the significant changes within the financial services industry, specifically the call for greater innovation with retirement income products following the Retirement Income Covenant (RIC) which came into effect in July last year.
“Innovation in retirement products has consistently been deprioritised and surpassed by more urgent issues concerning the industry. That all changed in July last year, following the implementation of the RIC a bright line was clearly drawn by the government and APRA. The starting gun has been fired,” said Allianz Australia Life Insurance CEO, Adrian Stewart.
“The industry has been put on notice. We need to collaborate, take action and deliver solutions to members and clients or it might just be regulated with mandated outcomes.
“The grey tsunami is coming and over the next 20 years there’s going to be up to 10 million Australians who will be in retirement. We have assembled a team of global specialists with deep sector expertise to build new solutions that align to the urgent needs of advisers and institutions to deliver these next generation products for Australian retirees.”
We also welcome Sandra, who has extensive experience managing people in various HR leadership positions over her twenty-year career. Sandra is committed to building and influencing the people and culture agenda to deliver commercial people and culture solutions.”
Changing the game for advisers and superfunds
AGILE is designed to enhance the provision of retirement planning for advisers. It offers the ability to lock in a guaranteed rate of income while clients are still in the accumulation phase (pre-retirement) or retirement income phase, to better plan retirement strategies with certainty.
The solution was developed in consultation with some of the biggest super funds in the country and the adviser community, direct retiree feedback and the global Allianz network in established retirement markets.
Mr Stewart explained, “This process took considerable time, but we believe this product sets a new standard for the industry, for the first time a retirement product allows advisers to integrate retirement solutions into their current ecosystem that deliver outcomes with certainty for the entirety of their client’s life.”
The company has made significant investments in leading edge technology and retirement solution infrastructure to support a pipeline of innovative products that deliver certainty and flexibility.
AGILE is founded on the most successful retirement solution that’s tried and tested from Allianz Life Company in the US which manages over $165bn USD in retirement savings.
Overcoming longevity risk through next gen solutions
The universal problem for Australians preparing for and during retirement is the fear of running out of money.
“When we talked to advisers, retirees and super funds, it was unanimous. Retirees need certainty of income and the last thing they need is their income to go down or be volatile in a market drawdown.
The time is now for advisers and retirees to consider anchoring their portfolios with a guaranteed income. The markets are highly volatile, inflation is rife and the income profile for retirees can be locked in now, market linking their asset base (up to a maximum return) with downside protection, until the income is turned on,” said Mr Stewart.
The role of a guaranteed income in portfolio construction is to provide stability that retirees can rely on throughout their retirement, despite market conditions. As one of the world’s largest insurance companies, managing risk is in Allianz’s DNA.
Access to capital is another key issue for retirees. Which is why next generation products like AGILE provide flexibility by allowing retirees to withdraw funds at any time.
Mr Stewart concluded, “We are deeply committed to protecting Australians’ hard-earned savings and delivering the best solutions for both industry and retirees. We are just getting started.”
Allianz is a global leader in the provision of retirement solutions. With over 30 years’ experience in the US retirement market, the group has a presence in over 70 countries and serves 126 million retail and corporate clients. Allianz has been offering customer-centric solutions for Australians since 1914.
Notes to editors – How AGILE works
1. Access to capital
AGILE offers the ability to return the money within the product on either death or withdrawal if your personal needs change – unlike with a traditional annuity.
2. Certainty of income
Remove uncertainty by locking in a known lifetime income rate – with access to market-linked returns (up to a maximum return) and downside protection, every year you wait to start your income. AGILE delivers a guaranteed retirement income that can be relied upon as part of a portfolio. Retirees can lock in the income levels ahead of retirement to better plan their exit from the workforce. Regardless of if retirees choose the fixed or the rising option the income will never reduce.
3. Guaranteed lifetime income
Commence guaranteed lifetime income as soon as you’re ready any time after the first three years of investment, with a choice of fixed or rising income payments.
4. Protected growth
Continue accumulating money for retirement by selecting the protected Australian and/or global share index investment options to gain exposure to equity market returns, up to a maximum return.
 Subject to a market adjustment
 Australian Bureau of Statistics
 Subject to a market adjustment
About Allianz Retire+
Allianz Retire+ delivers the next generation of retirement income solutions to the Australian market. Our financial product solutions are designed to simplify the complex financial and emotional challenges that can confront people who are heading into retirement. Allianz Retire+ is a world-first Australian venture combining the scale and expertise of international insurance provider Allianz and global investment expert PIMCO.
This material is issued by Allianz Australia Life Insurance Limited, ABN 27 076 033 782, AFSL 296559. Allianz Retire+ is a registered business name of Allianz Australia Life Insurance Limited. This material has been prepared by Allianz Retire+ for general information purposes only. It is not comprehensive or intended to give financial product advice. Any general advice provided in this material does not take into account your objectives, financial situation or needs. Before acting on anything contained in this material, you should speak to your financial adviser and consider the appropriateness of the information received, having regard to your objectives, financial situation or needs. No person should rely on the content of this material or act on the basis of anything stated herein. Allianz Retire+ and its related entities, agents or employees do not accept any liability for any loss arising whether directly or indirectly from any use of this material. Past performance is not a reliable indicator of future performance.
Use of the word ‘guarantee’ in this material refers to an assurance that certain conditions or contractual promises will be fulfilled by Allianz Retire+ from the available assets of its Statutory Fund No 2, in relation to the product terms. This includes ‘guaranteed’ income payments in the Lifetime Income Phase which will be paid from the available assets of Statutory Fund No 2, noting that Allianz Retire+ may terminate the product in certain limited circumstances as outlined in the Product Disclosure Statement referred below.
Allianz Australia Life Insurance Limited is the issuer of Allianz Guaranteed Income for Life (AGILE). Prior to making an investment decision, investors should consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) which will be available on our website (www.allianzretireplus.com.au) when the product is released on or around 6 March 2023.
PIMCO provides investment management and other support services to Allianz Retire+ but is not responsible for the performance of any Allianz Retire+ product, or any other product or service promoted or supplied by Allianz. Use of the POWERED BY PIMCO trademark, or any other use of the PIMCO name, is not a recommendation of any particular security, strategy or investment product.