Disclaimer 

The Allianz Guaranteed Income for Life Retirement Strategy Illustrator ("tool") is an educational tool that is specifically prepared for authorised financial advisers in Australia and is not intended to be used by retail investors.

There are two distinct types of projections available within the tool that users can choose to model: Superannuation Projections or Non-Superannuation Projections. Within the opening screen of this tool, users must select which type of projections they wish to model and each pathway (i.e. Superannuation or Non-Superannuation) has a distinct set of output, projection methodology, information and assumptions.

 This disclaimer relates to the Non-Superannuation Projections section of the tool only.

 This tool allows you to model and generate an estimated hypothetical investment in the Allianz Guaranteed Income for Life (AGILE) product.

The results of this tool, including the projected performance and impact of AGILE, are illustrative only and designed to educate and raise awareness of how a product in the lifetime income stream product class may function in the Australian market. The results are based on certain assumptions and future projections that are not predictions or guarantees. Actual returns on an investment may differ materially from the information provided by the tool and do depend on some of the information you enter. Any advice provided in this tool is general advice only and does not take into account your client’s objectives, financial situation or needs. Before acting on anything contained in this material, you should consider the appropriateness of the information received, having regard to your client’s objectives, financial situation and needs. Past performance is not a reliable indicator of future performance. The methodologies for the modelling approach are set out in the tool Assumptions and Limitations. You should ensure that you read and understand the Disclaimers, Assumptions and Limitations that relate to the tool, as provided in the link at the bottom of the tool.

This tool should not be relied on for the purposes of making a financial decision or a decision in relation to a financial product. As a licensed financial adviser, you are solely responsible for considering the appropriateness of any product for your clients’ circumstances. In providing this tool to you, Allianz Retire+ is not providing financial advice to you or your clients. You acknowledge that you are not acting as Allianz Retire+’s agent and agree that you will not represent that you are Allianz Retire+’s agent.

AGILE consists of two phases: (1) Growth and (2) Lifetime Income. During the growth phase the investment will continue to benefit from market exposure via returns linked to an equity index that may rise or fall (with a level of investment protection). The Lifetime Income phase can be commenced any time after the third year, by converting the Investment Value to a guaranteed Lifetime Income stream, with a choice of Rising or Fixed Lifetime Income options.

Use of the word ‘guarantee’ in relation to Allianz Guaranteed Income for Life (AGILE) 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 available on the Allianz Retire+ website.

Allianz Guaranteed Income for Life (AGILE) is issued by Allianz Australia Life Insurance Limited (ABN 27 076 033 782) (AFSL 296559) (Allianz Retire+). Allianz Retire+ is a registered business name of Allianz Australia Life Insurance Limited. Prior to making an investment decision you should read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) which are available on our website (www.allianzretireplus.com.au). The tool is current as of January 2025 and is subject to change. To the extent permitted by law, neither Allianz Retire+ nor any of its related entities, agents or employees accept any liability for any loss or damage arising, directly or indirectly, from reliance on this tool.

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 trade mark, or any other use of the PIMCO name, is not a recommendation of any particular security, strategy or investment product.

The tax and social security information in this material sets out our understanding of current legislation and practice as at the date of this document. It is only intended to be general in nature and does not constitute tax or social security advice. We recommend that you seek specific tax and social security financial advice on your personal circumstances before making an investment decision.

Personal information collected via the tool is only for the purposes of performing illustrative calculations and will be handled in accordance with our Privacy Policy available at: https://www.allianzretireplus.com.au/footer/privacy-policy.html.

Assumptions

The results shown will vary depending on the assumptions used by the tool and the user’s inputs. All assumptions used are believed to be reasonable based on the current retirement income stream landscape and legislation.

Given rates and features can be different from one lifetime income stream to the next, these may differ amongst income streams offered by various providers. Below are the key assumptions that are used in the tool.

• This tool is designed to be used by advisers only, in respect of people who are aged 50-80 years and wanting to see if a guaranteed Lifetime Income could be of benefit in retirement.
• Assumptions have been made for simplification purposes to provide a simple way to see how AGILE may perform. This tool is not intended to replace an adviser’s comprehensive modelling tools, and it is expected that advisers would also model their client’s full situation in their existing comprehensive modelling tool prior to providing advice.
• The tool takes inflation into account and initially shows all future results in today’s dollars, however there is a toggle to show future dollars. Inflation is based on the Consumer Price Index (CPI) which is defaulted to a geometric average of 2.5% p.a., being the mid-point of the RBA’s annual inflation target of 2% to 3%, and can be changed in Settings. 
• Market returns and volatilities for growth and defensive assets are based on Blackrock Capital Market 30-Year Expected Return assumptions (as at 31 December 2022) and can be changed in the Settings. Please note, the market returns entered by the user may have a material impact on  the deterministic results provided by the tool and may vary considerably from actual future returns which may be positive or negative from one year to the next.
• The tool assumes that the first year is the start of the current financial year and that the Investor’s birthday is on 1 July. No allowance has been made for the projection to commence, or a birthday or retirement to occur, part-way through a financial year.
• Although AGILE can be purchased with Superannuation money, this option only reflects the potential outcome for Non-Superannuation money.
      o    To view Superannuation Projections of AGILE benefits, access the opening screen and elect the Superannuation AGILE investment option. The Superannuation AGILE investment option contains separate assumptions, projections and disclaimer.

• Where the user selects the ‘Spouse Insured’ option, details of the Spouse must be entered. As per eligibility rules, a spouse must be above age 50 and below age 80 at commencement of the AGILE investment.
• Investment earnings are taxed at the assumed tax rate provided by the user. No allowance has been made for other tax, such as income tax on the salary or earnings of any other investments the Investor may hold.
• AGILE rates are the same regardless of gender. Gender inputs are used to determine Projection Age and Capital Access Schedule if the Age Pension+ option is elected.
• Where couple is selected, it assumes both members of the couple remain alive during the full projection period. No allowance has been made for where a member of a couple may pass away during the projection period.

AGILE

• AGILE has a minimum investment amount of $20,000.
• ‘Age Pension+’ option may be elected for non-superannuation investments by the earlier of (i) the date when commencing the Lifetime Income Phase for Lives Insured not yet at Pension Age; (ii) the date the Life Insured reaches Pension Age; or (iii) the date of commencing an AGILE investment if the Life Insured is already above Pension Age. This election may qualify the Investor for additional Age Pension due to the AGILE investment being subject to a reduced Age Pension assets test for social security purposes (which is subject to the Social Security regulations from time to time). Electing this option will also mean the amount of money that can be accessed as a withdrawal or claim upon death is capped at legislated maximums and may vary the Lifetime Income rates applicable upon commencement of the Lifetime Income Phase.
• Any time after the third year, Investors can start the guaranteed Lifetime Income by commencing the Lifetime Income Phase. The guaranteed Lifetime Income is determined by multiplying their Investment Value on the Lifetime Income Commencement Date by their Lifetime Income Rate. At this time, two elections are available: (1) a Spouse Insured option – which would mean that, upon death, the Lifetime Income continues to be paid for the lifetime of any surviving spouse[1]; and (2) a choice of either Lifetime Income Fixed or Rising Income payment options. Income payments will continue to be paid until death, guaranteed by Allianz Retire+ even after the Investment Value falls to zero.  
• The Investment Value of AGILE is accessible at any time, however any withdrawal above the Free Withdrawal Amount – ‘FWA’ (5% of the initial Investment Amount each year) in the Growth Phase or above the annual income payments during the Lifetime Income Phase within the first 10 years may be subject to a Market Value Adjustment (MVA). Please refer to the PDS for more information on the MVA.
• The tool does not allow for a future withdrawal, however the Full Withdrawal Value shown in the table is net of any MVA applicable assuming no change in market environments. This value is also net of any tax applicable on Full Withdrawal Value in excess of the undeducted Purchase Amount in the Income Phase.
• Where ‘Age Pension+’ is elected there is no access to a FWA in the Growth Phase; and the withdrawal value will be limited to a legislated maximum commonly referred to as the social security Capital Access Schedule.
• The time at which income from AGILE can commence must be after a minimum of three years and must be commenced by age 100. As such, the Age AGILE Income Starts field has been limited to reflect this. If an Investor elects the Age Pension+ option, AGILE income must be commenced by Life Expectancy – the tool does not apply this limitation and therefore actual experience may differ from what is displayed here.
• Life Expectancy in relation to Age Pension+ and Capital Access Schedule are based on the Australian Life Table 2015-17. 
• The default allocation in AGILE is 50% into the Australian Equity Index – Partial Protection: Initial 10% and 50% into the Global Equity Index – Partial Protection: Initial 10% options. These can be changed in Settings to any combination of the four AGILE investment options.
• After initial selection, the tool does not allow for the user to change their investment options in following years of the projection.
• There is no investment choice in the Lifetime Income Phase (once AGILE has commenced paying income), the Investment Value is automatically switched 100% to the Australian Equity Index – Total Protection option.
• The tool assumes the Australian Equity Index and Global Equity Index Partial Protection: Initial 10% options are equivalent to a growth asset.
• The tool assumes the Australian Equity Index and Global Equity Index Total Protection options are equivalent to a defensive asset.
• Investment earnings during the Growth phase and Lifetime Income payments, net of any deductible amounts, are taxed at the assumed tax rate provided by the user.
• Assumptions for growth and defensive asset returns are based on BlackRock Capital Market 30-Year Expected Return Assumptions (as at 31 December 2022) and can be changed in the Settings.
• Total charges for AGILE are a 0.80% p.a. Product Fee and 1.15% p.a. Lifetime Income Premium.
• AGILE offers two options for the Lifetime Income Phase: Lifetime Income – Fixed, and Lifetime Income – Rising. If Lifetime Income – Fixed is selected, the annual income will remain constant for the duration of the projection. It will have a higher starting income than the Lifetime Income – Rising option, however it may lose purchasing power over time due to the impact of inflation.
• If Lifetime Income – Rising is selected, the income will increase each year in line with any positive annual Australian Equity Index movements up to a Maximum Return (or remain at the same level if zero or negative movement in that index). The tool assumes the annual income from AGILE increases in line with the gross defensive asset return assumption.
• The Lifetime Income percentages are based on the AGILE Lifetime Income Rates available to Investors who purchase AGILE between 1st January to 31^st January 2025, these may be updated as AGILE rates are changed. The Lifetime Income percentages that apply for a particular Investor may differ depending on whether they have elected:

        –         a Fixed or Rising Lifetime Income

        –         the Spouse Insured option

        –         the Age Pension+ option

• For Centrelink purpose, AGILE purchased with non-superannuation monies is assessed as follows (note treatment differs between whether or not Age Pension+ is elected):

Age Pension+ NOT elected*
Age	AGILE Phase	Asset Test	Income Test
Whilst under Pension Age	Growth Phase	100% of Purchase Amount	Deemed on 100% of Purchase Amount
	Lifetime Income Phase	Higher of: ·      Benefit payable on death, and ·      60% of purchase amount until age 84 (or min 5 years);30% thereafter.	60% of Lifetime Income payments (lump sum withdrawals not assessed)
Whilst over Pension Age	Growth Phase	Higher of: ·      Benefit payable on Death, or ·      60% of purchase amount until age 84 (or min 5 years);   30% thereafter.	Nil assessment
	Lifetime Income Phase		60% of Lifetime Income payments (lump sum withdrawals not assessed)

 

Age Pension+ IS elected*
Age	AGILE Phase	Asset Test	Income Test
Whilst under Pension Age	Growth Phase	100% of Purchase Amount	Deemed on 100% of Purchase Amount
	Lifetime Income Phase	60% of purchase amount until age 84 (or min 5 years); 30% thereafter	60% of Lifetime Income payments (lump sum withdrawals not assessed)
Whilst over Pension Age	Growth Phase	60% of purchase amount until age 84 (or min 5 years); 30% thereafter	Nil assessment
	Lifetime Income Phase		60% of Lifetime Income payments (lump sum withdrawals not assessed)

*This information is based on current social security regulation which can change over time.

• Deeming rates are assumed to remain constant at their current rates of 0.25% for the lower threshold and 2.25% for the upper threshold.

 

Portfolio Construction and Investment Returns

• Using BlackRock’s Capital Market Assumptions for 30-Year Expected Return as at 31 December 2022, the growth and defensive portfolios are constructed as follows:

Asset	Expected annual return over 30 years	Allocation in 100% Growth Portfolio	Allocation in 100% Defensive Portfolio
Australian Large Cap Equity	6.64%	30%	0%
Global ex Australia Large Cap Equity	8.82%	30%	0%
Emerging Large Cap Equity	11.08%	10%	0%
Global Small Cap Equity	8.23%	10%	0%
Global Infrastructure Equity	10.28%	10%	0%
Global Core Real Estate	6.85%	10%	0%
Global Aggregate Bonds	4.45%	0%	40%
Australian Corporate Bonds	4.98%	0%	20%
Australian Government Bonds (10+ yrs)	4.91%	0%	20%
Cash	3.60%	0%	20%

BlackRock Investment Institute, February 2023. Data as of 31 December 2022.

Notes: Return assumptions are total nominal returns gross of fees. Returns are unhedged in Australian dollars, with the exception of global aggregate bonds.

• Please note: past performance is not a reliable indicator of future performance and actual returns for the above asset classes may differ materially from the above default returns as used in the tool and may be positive or negative in any particular investment timeframe.
• The default fixed assumptions used are:

Asset Classes	Default Fixed Assumptions
Growth portfolio	8.28%
Defensive portfolio	4.37%
CPI	2.50%

 

Please note:

• The investment returns shown in the tool are illustrative only and not a guarantee or prediction of future investment returns.
• The default return for growth assets is assumed to be 8.28% p.a. and for defensive assets 4.37% p.a. and can be changed in the settings.
• The tool assumes that AGILE partial protection options earn returns equal to the growth portfolio and that AGILE total protection options earn returns equal to the defensive portfolio. In practise, Maximum Returns apply to each of the AGILE investment options. The default growth and defensive assumptions above are within the current level of Maximum Returns and so projections using these default assumptions are not impacted by the Maximum Returns. 
• If the user materially increases the growth / defensive asset return assumptions such that they are greater than the Maximum Returns in effect, the Maximum Return caps will not apply and overstate the return earned by the AGILE investment options - which is a limitation of the tool. 

For more information on Maximum Returns, please refer to the AGILE PDS. 

Limitations

The tool is based on the information provided by the user, and certain assumptions that are believed to be reasonable based on current market conditions, current legislation and industry standards. This tool is intended to provide simplistic illustrations only, as such not all variables related to a Life Insured (or Spouse Insured’s if applicable) situation will be included and this should be considered a limitation of this tool.  

Please note, a lifetime income stream, including AGILE is intended to be a permanent purchase. Some lifetime income streams other than AGILE may not allow withdrawals, or may provide limitations on withdrawals, once commenced. As such, any Investor would need to take into account any future lump sum capital consideration they may need (e.g. purchase of new car or medical expenses) and consider how they would fund this when deciding how much to allocate to a lifetime income stream. If a withdrawal is made or the lifetime income stream is closed, the total net benefit the Investor receives may be less than if they did not make a withdrawal or close the product.

This tool does not consider personal financial needs, both currently and in the future, including but not limited to the Life Insured (or Spouse Insured’s if applicable) expenditure requirements and debts. When making a financial decision, you should contemplate your client’s needs, objectives, and overall financial situation to determine whether a lifetime income stream, would be appropriate for your client’s circumstances.

This tool is not intended to be relied on for the purpose of making a decision in relation to a financial product.

Other limitations include that the results may not reflect:

• All applicable fees and costs other than annual fees as described above (such as platform fees or Adviser Service Fees).
• Changes to superannuation, taxation or other laws or regulations that may affect the assumptions used in the tool.
• The maximum deferral period that applies if an Investor chooses the Age Pension+ Option which is Life Expectancy (i.e. the Investor cannot commence their Lifetime Income after Life Expectancy).
• If the user materially increases the growth / defensive asset return assumptions such that they are greater than the AGILE investment option Maximum Returns in effect, the Maximum Return caps will not apply and overestimate the return earned by the AGILE investment options.

 

[1] The surviving spouse must be over 50 and under 80 at the time of commencement of the AGILE investment, and election of this option may mean that a different set of age-based rates will apply when converting the Investment Value into a Lifetime Income.