Allianz Life Insurance Company of North America (Allianz Life) is offering a new guaranteed income product to its defined contribution (DC) plans.
The Allianz Lifetime Income+ Annuity with the Lifetime Income Benefit will be accessible to DC plans nationwide and will offer features including growth potential, protection from market loss, and guaranteed lifetime income. Allianz Life said the benefit will also have the potential to increase annually throughout a participant’s life, to cap for inflation effects.
“We designed this new guaranteed lifetime income product to work for real people and the reality of retirement today,” said Matt Gray, head of employer markets, Allianz Life. “The Allianz Lifetime Income+ Annuity marks a new way to design in-plan annuities with a flexible product design, streamlined connections with plan partners, and increasing income potential.”
The product is delivered through coordination among recordkeepers, enrollers, managed account providers, middleware providers and other DC plan partners. Plans offering the product are already live within the LDI-MAP (d.b.a. iJoin) and IPX Retirement network of recordkeepers. Recordkeeper and advisor networks can also offer the Allianz Lifetime Income+ Annuity with the Lifetime Income Benefit as a protected accumulation and decumulation option in 401ks and other DC plans.
The incoming benefit comes during a time when more Americans view guaranteed income strategies as a good fit for their retirement, and more plan sponsors want these benefits in their plans. A 2022 Allianz Life study found that 60% respondents would consider adding an annuity to their employer-sponsored plan if it was available, and 80% said they would be interested in a product that would offer guaranteed income along with Social Security.
Additionally, workers said they are more likely to stay at their job if an employer offers lifetime income products. The Allianz study found that nearly three in four Americans (74%) said having an option that allowed them to build a protected foundation for lifetime income would increase their loyalty to their employer.
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