ALLIANZ 4LIFE formule Retraite (for pensions)

Most of you by now know about the savings account called Assurance Vie which is an investment with tax advantage (revenues and inheritance tax) but did you know that with us, there are different sort of Assurance Vie depending on what you expect from your money. This article will present you with 1 very innovative assurance vie from Allianz which is looking to guaranty you with a regular income for the rest of your life. 

    1. Criteria for subscribing:  Available to any French resident of 50 to 75 years old who have a minimum of €30 000 to invest. Maximum €500 000.
    2. How does it work: This investment guaranties you an income for life hence the name Allianz4Life meaning Pension for Life! This income depends on how old you are when you start the investment. Between 60 and 63, it is 2% of the amount you invest, between 64 and 70 it is 2.40% and after 71 years old, it is 2.90% but this amount is re-evaluated once a year on the anniversary date of the contract and it can never come down, it can only go up!

E.g.: You invest €100 000 and you are 65 so you will get €2 400 per year of income (payments can be made yearly, quarterly or monthly). After one year, your investment has gone up to €120 000 so your new income is now €2 880 per year. Then the year after the investment is €90 000, your income will still be €2 880! Even if you have no money left (case of a crash!) you will always get the highest revenue you got to. The income can start from the age of 60 meaning you can invest the money at 50 years old but can only start receiving the income at the age of 60. Even if you don’t receive the income, it is re-evaluated every year if your capital grows.

    1. How the money is invested: The money is invested on one fund: Allianz Strategy 50. Noted 5 stars by Morningstar (Independent investment research). As of 29th of February, Strategy 75 has made +17.22% in the last 3 years, +36,43% in the last 5 years. Allianz Strategy 50 has made +4,34% in the last 3 years, +18,14% in the last 5 years. Of course, performances of the past are no guaranties for the future and those figures include the big losses of 2022!
    2. Fees: Entry fee is 4.50% negotiable. Usually above €100 000, I take 0%. Management fee per year is 1.015%+ between 1.36 and 2.90% for the income guaranties (depends on your age and when you start the income).
    3. Withdrawals: Partial and total are possible at any time. No fees. Note that if you do a partial withdrawal, it will reduce your guaranteed income by the same %. So, if you cash in €10 000 and that represent 10% of your capital, your guaranteed income is reduced by 10%.
    4. Adding money to it: Not possible! You can open another one with €30 000 though!!

Conclusion: With interest rates being at their lowest ever, it is imperative to look at alternative investments that would bring more income without risking it all. Especially if the inflation goes above the % of interest you get. If this happens, you actually lose money without realising it! 

Allianz has a solvability ratio that is one of the best on the market at 174% for Allianz France and 200% for Allianz Group so don’t hesitate to contact me for any further information regarding our very large range of investments. 

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