USA-1274a (R-8/2007) For Broker/Dealer use only – Not for use with the public.

Rethinking your retirement[Name, Title]

Allianz Life Insurance Company of North America

© Copyright 2010 Allianz. All rights reserved.

Insurance and annuities are issued by Allianz Life Insurance Company of North America

Neither Allianz, its agents, or representatives offer tax or legal advice. Clients should always consultwith qualified tax/legal advisors concerning their own situation.

ENT-913 (1/2010) 2AAS Team

Retirement dream

• We are living longer, healthier lives

• Retirement is an opportunity to pursue hobbies, travel, visit with loved ones, etc.

• But, for many of us, the real retirement dream may be to be financially independent

• Need realistic retirement strategies to make that a reality

ENT-913 (1/2010) 3AAS Team

Retirement reality

• Planning ahead can be difficult. We do not plan to fail, we fail to plan.

• Other issues are given higher priorities

• Longer you wait, the harder to make up the difference

• Even a few years can make a big difference

ENT-913 (1/2010) 4AAS Team

Retirement reality

With $200/month additional savings at 5% per year over 10 years

Year Start Add Rate Year end

1 $40,000.00 $200/month 5% $44,512.50

2 $44,512.50 $200/month 5% $49,255.80

3 $49,255.80 $200/month 5% $54,241.90

4 $54,241.90 $200/month 5% $59,483.00

5 $59,483.00 $200/month 5% $64,992.30

6 $64,992.30 $200/month 5% $70,783.40

7 $70,783.40 $200/month 5% $76,870.80

8 $76,870.80 $200/month 5% $83,269.70

9 $83,269.70 $200/month 5% $89,995.90

10 $89,995.90 $200/month 5% $97,066.20

http://www.dol.gov/ebsa/publications/nearretirement.htmll, as of December 1, 2009

This hypothetical example is shown for demonstration purposes only.

ENT-913 (1/2010) 5AAS Team

Retirement reality

• Procrastination today is common. We do not plan to fail, we fail to plan.

• Longer you wait, the harder to make up the difference

• Even a few years can make a big difference

• Never too early to start

• Withdrawal rates also important to consider

ENT-913 (1/2010) 6AAS Team

Retirement reality

This chart shows how long retirement savings will last at a 4%, 5%, 6%,and 8% annual year-end withdrawal rate. The chart is a hypothetical example and assumes $500,000 beginning balance in retirement, a 3% annual inflation rate, and a 6% annual interest rate. This does not represent the performance of any specific investment product.

Rate of withdrawal

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

65 80 88 95 112

8%

6%

5%4%

This chart is for illustrative purposes only.

Withdrawal rates important

ENT-913 (1/2010) 7AAS Team

Retirement today

Taking action

Refocusing/repairing/rebuilding

Putting it all together

Options

Agenda

ENT-913 (1/2010) 8AAS Team

Recent market turmoil adding to the fears of running out of money

Afraid to take action

- Don’t know where we are at in our retirement strategies

- Are often afraid to find out

Job losses a reality

- Fear of losing job or have recently lost job

Other needs take priority

Retirement today

ENT-913 (1/2010) 9AAS Team

Refocus/repair/rebuild your retirement strategies

- Walk through where you are at financially today

- Walk through where you want to be to have a reasonable retirement tomorrow

- Focus on what you can control

Retirement today

ENT-913 (1/2010) 10AAS Team

1. Save more now

- Why don’t we save?

• It’s hard to do and includes unpleasant things like budgeting and doing without. However, it is often a necessity.

- Save regularly through a variety of sources (401k, etc.)

- Increasing savings now can mean less retirement income replacement needed later

Moving forward

ENT-913 (1/2010) 11AAS Team

Saving more now can reduce the amount of income needed later

Moving forward

$45,000

$5,000 401(k)

Pension

401(k)

$16,000

$7,000

$10,000

74%

Today Retirement

Social Security

The visual is a hypothetical example only. Retirement income numbers used is for demonstration purposes only.

ENT-913 (1/2010) 12AAS Team

Saving more now can reduce the amount of income needed later

Moving forward

$45,000

$5,000 401(k)

Pension

401(k)

$16,000

$7,000

$10,000

74%

Today Retirement

Social Security

$15,000

$42,000

$3,000

90%

Assumes hypothetical 5% rate of distribution over 20 yearsThe visual is a hypothetical example only. Retirement income numbers used is for demonstration purposes only.

ENT-913 (1/2010) 13AAS Team

1. Save more now

2. Control debt

3. Working longer

- Pension delays

- Social Security delays

4. Look at options to protect your assets

Moving forward

ENT-913 (1/2010) 14AAS Team

REFOCUS on retirement expense strategies

- Focus on what you can control

- Help manage expenses

• Survival income

• Desired income

Refocusing, repairing, rebuilding

ENT-913 (1/2010) 15AAS Team

Three levels of retirement expenses

Desired

Expenses

Legacy

Survival Expenses to cover your most basic needs

Lifestyle “extras”

Funds remaining for your beneficiaries

Refocusing, repairing, rebuilding

ENT-913 (1/2010) 16AAS Team

REPAIR sources of income

- Help you gain control over sources by knowing where they are

• Social Security

• Defined Benefit plans

• 401(k)s

Refocusing, repairing, rebuilding

ENT-913 (1/2010) 17AAS Team

Roth IRA

Seven sources of retirement income

Sources of Income

Welfare - charity

Nonqualified Assets (NQA)

Traditional IRA

Qualified ERISA

Social Security

Continued employment

The base

Employer sponsored plans (ERISA)

Contributions and rollovers from ERISA plans

Tax deferred / tax free

Mutual funds, CDs, stocks, bonds

Phase into retirement gradually

Not desirable

Refocusing, repairing, rebuilding

ENT-913 (1/2010) 18AAS Team

REBUILD income protection strategies

Supplementing defined benefit pension plans

- More optional guarantees

- Reliability of future income

Survival income is where you place your guarantee vehicles

Refocusing, repairing, rebuilding

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America, and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. Premium or similar taxes may apply upon annuitization, full withdrawal, or at the time of death.

ENT-913 (1/2010) 19AAS Team

Retirement accumulation stage

Retirement accumulation

stage

Retirement income stage

Financial objective

Have enough money to retire

Asset allocation Portfolio allocation

Time horizon

Known to retirement

Options

ENT-913 (1/2010) 20AAS Team

Retirement income stage

Retirement accumulation

stage

Retirement income stage

Financial objective

Have enough money to retire Not outlive assets

Asset allocation Portfolio allocation Withdrawal

allocation

Time horizon

Known to retirement

Unknown to date of death

Options

ENT-913 (1/2010) 21AAS Team

Retirement accumulation

stage

Retirement income stage

Financial objective

Have enough money to retire Not outlive assets

Asset allocation Portfolio allocation Withdrawal

allocation

Time horizon

Known to retirement

Unknown to date of death

Rethinking retirement

strategy

Rethinking retirement expenses

Rethinking portfolio with longer-term guarantees

Rethinking retirement income protection vehicles

Options

Rethinking retirement strategy

ENT-913 (1/2010) 22AAS Team

Start with a clean mental slateRefocus overall retirement strategyRefocus on additional retirement issues

- Beneficiaries updated/correct

- Legacy

- Life insurance

• Some policies can guarantee replacement income if either primary wage earner dies

- Health care and long term care

Options

ENT-913 (1/2010) 23AAS Team

Health care and long term care

We often look at our retirement strategies based on our current good health status

Fail to prepare for possible future health issues or health care needs

Estimated median savings needed to cover a couple’s health costs in retirement at age 65

in the year 2018?1

1 EBRI Issue Brief No. 317, May 2008, www.ebri.org

$325,000

Options

ENT-913 (1/2010) 24AAS Team

What if gaps between accumulation and income needs?

Considering financial strategies

Putting it all together

ENT-913 (1/2010) 25AAS Team

Putting it all together

5 options for income/expense gaps

Sources of Income

Welfare – charity

Nonqualified Assets

Roth IRA

Traditional IRA

Company retirement programs

Social Security

Continued Employment

Survival

Desired

Legacy

ExpensesOptions

Lower your expectations

Spend less and save more now

Decide to work longer.

Take on more risk

Combination (or all) of above

ENT-913 (1/2010) 26AAS Team

How do the 5 options work?

$ n

eed

ed t

o s

up

ple

men

t in

com

e

$ now (401(k))

$ additional (401(k)) $ more

70?

Conservative 4 - 6%

Moderate 6 - 8%

Aggressive 8 - 10%

Combination of all options

Current standardof living

Age45 65

Retirement

This example is shown for illustrative purposes only and is not intended to predict or project future results. Your actual results will vary. Please note that with the potential for greater returns comes greater risk and volatility.

Putting it all together

Time

ENT-913 (1/2010) 27AAS Team

Putting it all togetherCurrent standard

of livingCombination most effective

Age

$ n

eed

ed t

o s

up

ple

men

t in

com

e

$ additional (401(k)) $ more

65 68?

Conservative 4 - 6%

Moderate 6 - 8%

45 65This example is shown for illustrative purposes only and is not intended to predict or project future results. Your actual results will vary. Please note that with the potential for greater returns comes greater risk and volatility.

Time

ENT-913 (1/2010) 28AAS Team

• Rethink your retirement strategies

• Let’s refocus on what you can control

Use the worksheet

• Let’s repair your existingretirement strategies

• Start to rebuild your retirement future

Putting it all together

ENT-913 (1/2010) 29AAS Team

Retirement today

Taking action

Refocusing/repairing/rebuilding

Putting it all together

Options

Summary

ENT-913 (1/2010) 30AAS Team

Products issued by Allianz Life Insurance Company of North America. For variable annuities, products are distributed by Allianz Life Financial Services, LLC. 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com

Not FDIC insured May lose value No bank or credit guarantee Not a deposit Not insured by any federal government agency or NCUA/NCUSIF

Wrap up

Questions?

This presentation is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Allianz Life Insurance Company of North America, its affiliated companies, and their representatives do not give legal or tax advice. Encourage your clients to consult their tax advisor or attorney.

USA-1274a (R-8/2007) For Broker/Dealer use only – Not for use with the public.

Rethinking your retirement

© Copyright 2010 Allianz. All rights reserved.

[Name, Title][Contact information]

Allianz Life Insurance Company of North America