Retirement planning gets more defensive

When markets are strong, it can be easy for investors to overlook risk. The recent uptick in volatility has brought risk back into sharp focus, especially for those nearing or in retirement.

While markets tend to rise over the long term, investors approaching retirement often don’t have the time to wait for a recovery after a downturn. Sequence of returns risk and market volatility can significantly impact their ability to draw income and stay on track.

As a result, retirement planning today is not just about accumulating wealth—it’s about managing risk. Some of the biggest threats are external factors like recessions and the geopolitical landscape which require more than traditional diversification to address.

The 2026 Annual Retirement Study* from the Allianz Center for the Future of Retirement identified a core tension among Americans. Many feel that they need to keep nearly all their retirement savings invested to avoid falling behind, but the majority worry that doing so exposes them to significant loss. This is a defining challenge for financial professionals and their clients.

To navigate this tension, financial professionals can help clients identify opportunities to grow assets while managing risk and use flexible tools designed for uncertain conditions.

Balancing growth and protection

At Allianz Life, we believe the future of a retirement strategy lies in giving clients more control over how they experience market volatility. For years, we have been leading product innovation to offer a strong combination of growth potential with risk management.

One of the ways we have done that is through our signature lock features across Registered Index-Linked Annuities (RILAs), Fixed Index Annuities (FIA) and Index Universal Life Insurance (IUL) product lines. These features can potentially capture gains and limit losses.

While it operates differently depending on the product type, at a high level, the lock feature offers the ability for a level of control and to help address the impact of volatility. When a product’s index value is up, gains can be locked in and when conditions change, losses can be limited. This helps clients go from enduring volatility to responding to it.

Rethinking how clients experience volatility

We first introduced the Performance Lock¹ feature on our RILAs more than a decade ago. We were a pioneer in adding lock capabilities to our products and since then usage of lock has grown dramatically. Performance Lock and Index Lock² (available with our indexed universal life insurance policy and select fixed index annuities) have evolved over time to help make it a more valuable tool.

When we launched Performance Lock on our RILAs, a lock could be executed once a year. Then we innovated to create “lock and get back in” so that a lock could be performed two times in an index period. We challenged ourselves to innovate again. Last year, we increased the number of times a contract owner can use our lock and get back in (Early Reallocation³) feature from two to 12 per index year on our RILAs. We continue to enhance our lock features and make them easier to use so financial professionals can bring even more value to their clients as part of their risk management strategy.

Like with any financial product, RILAs, FIAs, and IUL come with trade-offs. An appropriate balance between growth potential and protection is unique for every individual depending on their goals, time horizon and risk tolerance. We want to equip financial professionals with the tools to serve clients and their dynamic needs over time. We strive to offer a range of products and features so that financial professionals have the options available to help meet the goals of their clients. By designing our products with a variety of indexes, crediting methods with arrange of caps, buffers, floors and other features we offer financial professionals the ability to fine tune products for each client’s unique needs.

Delivering value beyond the product

Adoption of our products is driven by demonstrated client value. For example, more than three in four (77%) are interested in a financial product that allows them to lock in gains or limit losses, according to the Q1 2026 Quarterly Market Perceptions Study**. The lock features can help address both financial outcomes and emotional reassurance needed for confidence in a long-term financial strategy.

We support our financial professionals by pairing our product suite with a high level of service. Our team and tools help financial professionals identify and evaluate opportunities to use features like lock with dashboards, customized information about their book of business, daily system-generated communications on opportunities, among other support. Features like lock need to be accessible and actionable to have an impact on outcomes.

The next phase of retirement planning strategies

Retirement today is a complex decades-long life phase with a lot of uncertainty. With increasing longevity and unpredictable market conditions, long-term financial strategies should consider stability, predictability, and risk management.

Clients aren’t just looking for returns or higher interest rates. They want to be reassured as they seek to achieve their retirement goals.

That reassurance can come from product solutions that balance growth and protection with a sense of control.

* Allianz Center for the Future of Retirement® conducted the 2026 Annual Retirement Study in January 2026 with a nationally representative sample of 1,000 respondents age 25+ with an annual household income of $50K+/$75K+ (single/married) OR investable assets of $150K+.

** Allianz Center for the Future of Retirement conducted an online survey, the Q1 2026 Quarterly Market Perceptions Study in February 2026 with a nationally representative sample of 1,005 respondents age 18+ in the contiguous U.S.

The Allianz Center for the Future of Retirement® produces insights and research as a part of Allianz Life Insurance Company of North America.

_{Annuities can help meet long-term retirement goals by offering tax-deferred growth potential, a death benefit during the accumulation phase, and a guaranteed stream of income at retirement.}

_{Indexed universal life insurance provides a death benefit that is generally paid to beneficiaries income tax-free, and the potential to build accumulation value.}

_{Annuities can help meet long-term retirement goals by offering tax-deferred growth potential, a death benefit during the accumulation phase, and a guaranteed stream of income at retirement.}

_{Indexed universal life insurance provides a death benefit that is generally paid to beneficiaries income tax-free, and the potential to build accumulation value.}

_{¹Executing a Performance Lock may result in receiving less than the performance credit that would have been received had the index option not been locked. It is possible to lock in a negative return in a RILA. We will not provide advice or notification regarding whether a Performance Lock or Early Reallocation (also known as "get back in") should be executed, the optimal time to do so, or if a Performance Lock or Early Reallocation is exercised at a sub-optimal time. We are not responsible for any losses related to decisions of whether or not to execute a Performance Lock or Early Reallocation. Early Reallocation Caps, Participation Rates, and/or Trigger Rates received may be less than the Early Reallocation rates that become available later in the Index Year, or the renewal rates available on the next Index Anniversary.}

_{By executing a Performance Lock, your clients will no longer participate in any potential gains or losses for the rest of the index year and can result in receiving less than the level of protection provided by the buffer and/or floor.}

_{²Exercising an Index Lock may result in a credit higher or lower than if the Index Lock had not been exercised. Because the Index Lock occurs at the end of the business day, the actual value received may be higher or lower than at the time of request. Allianz will not provide advice or notification regarding whether to exercise an Index Lock or the optimal time for doing so. Index Lock is not available with all allocation options.}

_{³ Early Reallocation is not available within 14 calendar days before an Index Anniversary, and can happen up to twelve times in an index year. Early Reallocation is not available to contracts issued before 5/1/23, and may not be available in all states to contracts issued on or after 5/1/23. Please see the product prospectus for more information. A reallocation of locked index options can occur on or before an Index Anniversary.}

_{RILAs are subject to investment risk, including possible loss of principal. Investment returns and principal value will fluctuate with market conditions so that contract value, upon distribution, may be worth more or less than the original cost.}

_{Withdrawals will reduce the contract value and the value of any potential protection benefits. Withdrawals taken within the period stated in the prospectus may be subject to a withdrawal charge or a Market Value Adjustment (MVA), depending on the product.}

_{All withdrawals are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal additional tax.}

_{For more complete information about Allianz® RILAs and any available variable option(s), call Allianz Life Financial Services, LLC at 800.624.0197 for a prospectus. The prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the RILA, index options and any available variable option(s), which your clients should carefully consider. Encourage your clients to read the prospectuses thoroughly before sending money.}

_{Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Registered index-linked annuity guarantees do not apply to the performance of the variable subaccount(s), which will fluctuate with market conditions.}

_{Products are issued by Allianz Life Insurance Company of North America. Registered index-linked annuities are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com. This content does not apply in the state of New York.}

_{Product and feature availability may vary by state and broker/dealer.}

_{For financial professional use only – not for use with the public.}