As proprietary indexes are now being used more for determining the returns (or index credits) with fixed indexed annuities, it is important to have a good understanding of how your return will be calculated if you own, or you are considering a purchase of, the Allianz 222 annuity.
Of particular importance about the Allianz 222 annuity is the fact that it is now using the Barclays U.S. Dynamic Balance Index II – an index that has only been in existence since April 2015 – as a component in determining the annuity’s return.
Even the index that was used prior to this – the Barclays Dynamic Balance l index – is relatively new, only dating back to 1989. So, while this newer index may have had some up ticks, with such a short time span to work with, the numbers can sometimes seem skewed – which can be a key factor in disappointing results if the Allianz 222 fixed indexed annuity doesn’t live up to its expectations.
A Closer Look at the Barclays U.S. Dynamic Balance Index II Returns
During the first year of its young life, the Barclays U.S. Dynamic Index II actually had pretty lousy returns, showing a very small initial upward blip, and then tail spinning down by just the fourth month.
And, while the index has come back up since its low point in August of 2015 – and it even hit a “high point” in March of 2017 – most investors know all too well that past performance is never an indication of future results.
Barclays U.S. Dynamic Balance Index II
April 2015 – February 2016
Barclays U.S. Dynamic Balanced Index II
May 2016 – April 2017
The future results can be an essential factor, though, as they can ultimately make a difference in how your annuity performs – and in turn, how much income you can garner from the annuity in retirement.
Overall, given the low return that the Allianz 222 annuity has produced of late, it is not likely to provide you with an overall return of much more than 2 to 4%. And, while you may still be able to access a guaranteed income stream for life with this product, this guaranteed lifetime income is really the most beneficial for those who live into their 90s or beyond. Unfortunately, there is no guaranteeing that for anyone.
Want an Unbiased Look at the Barclays U.S. Dynamic Balanced ll Index as It Relates to the Allianz 222 Annuity?
In looking at any in-depth review of the Barclays U.S. Dynamic Balanced ll Index on its own, it can still be difficult to determine how its return will factor into the overall benefit that you may receive when it only makes up a portion of the annuity’s benefits.
In this case, it is always important to know what makes up the “whole picture” when you’re considering an annuity, or for that matter, any other financial product. And when it comes to the Allianz 222 annuity, there is a whole host of parameters to consider.
For example, the Allianz 222 annuity has a plethora of components – which can actually differ, depending on what state you reside in. So, be sure that you not only read over not just the product details, but also all of the small print that comes with purchasing an annuity.
Certified rates as of April 4, 2017
State by state variations apply to new applications only.
New business rates are not guaranteed and are subject to change at the discretion of the company.
The participation rate on Allianz fixed index annuities is 100%.
These are current rates only as of the date above.
For pending applications, please see the business rules.
Note: Product applications submitted prior to MVA availability will continue to
follow rates in states without an MVA.Source:
Rate Watch (http://www.aiponline.net/elink/carrier/rates/allzrates.pdf)
With that in mind, if you’re looking for a truly unbiased, yet highly thorough, take on whether or not the Allianz 222 annuity is right for you, or if there may be another alternative that is better for your specific situation, feel free to reach out to us here at Annuity Gator, and our highly trained annuity geeks will be happy to walk you through some possible scenarios.
The Annuity Gator
P.S. We included a few more related links to the Allianz 222 below that you might find useful:
- Allianz 222 Annuity Complaints
- Allianz 222 Annuity Statement of Understanding
- Independent, Objective Review of the Allianz 222 Annuity – [July 2019 Update]
P.P.S If you would like to read more of our Allianz annuity reviews here’s some links to check out:
- Allianz MasterDex X with Simple Income Rider Annuity
- Allianz MasterDex X Index Annuity
- Allianz Retirement Pro Variable Annuity
- Allianz Vision Variable Annuity
- Allianz Life 360 Annuity
- Allianz Life Core Income 7 Annuity
- Allianz Life Allianz Endurance Plus Annuity
- Allianz Master Dex 10 Annuity