Allianz Life Insurance Company of North America (Allianz Life) has partnered with retirement plan provider, Empower, to provide its in-plan annuity solution.
Allianz Lifetime Income+ will be the first fixed index annuity on Empower’s platform and the agreement will offer millions of Americans the opportunity to create retirement income streams guaranteed for their lifetime.
Allianz Life has brought its deep expertise to the defined contribution market as it introduces Allianz Lifetime Income Annuity, while Empower provides services with over $1.6 trillion in administered assets.
The product is a modern fixed index annuity designed for defined contribution plans that offers both protection from market downturns and growth potential with multiple ways to earn and accelerate interest.
It also provides participants with a high degree of flexibility to adjust their income strategy according to their evolving needs.
The firm stated that participants also maintain access to the cash value of their annuity, even after initiating lifetime withdrawals. Allianz Lifetime Income+ will soon be available to over 80,000 retirement plans and more than 18 million customers who use Empower for retirement plans, advice, wealth management and investments in the United States.
Matt Gray, Head of Employer Markets, Allianz Life, commented, “This partnership aligns with our shared vision of increasing access to guaranteed lifetime income and it will allow participants to have a wider range of options to build and protect their future income.”
Tina Wilson, Chief Product Officer for Empower, added, “Americans are living longer than ever before, therefore it is imperative to provide a diverse range of options to help them create a sustainable income stream that aligns with their desired lifestyle. The expansion of our product suite to include Allianz Lifetime Income+® emphasizes the importance of choice for both employers and participants.”
Additionally, the product will be accessible to plan participants who are enrolled in Empower’s Managed Account and Advisor Managed accounts, powered by Morningstar Retirement, which provides research and technology-driven products and services that help individuals reach their retirement goals.
Brock Johnson, President, Morningstar Retirement, commented, “This collaboration enables individuals to tailor their retirement plans to align with their specific circumstances and goals. By combining personalised advice with flexible products, we can help more investors reach for their desired retirement outcomes.”
A recent Allianz Life study disclosed that 66% of Americans with employer-sponsored plans expect most of their retirement income to come from these plans. However, the majority (61%) worry about running out of money from their plan during retirement.
“Adding a guaranteed lifetime income solution into their employer-sponsored plan can help address this fear by providing a dependable stream of income that they can rely on for as long as they live, and surveys show that many are interested,” explained the study.
“It is clear that participants are interested in guaranteed lifetime income solutions that safeguard a portion of their savings, as well as personalized support when making retirement savings decisions,” says Gray.
In this collaboration with Empower and Morningstar Retirement, Allianz Life is dedicated to ensuring that participants receive a dependable stream of income that aligns with their circumstances and objectives and is flexible enough to deal with changing circumstances.
