Rethinking your Retirement

1. Rethinking your Retirement • [Name, title]

2. 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

3. Retirement reality • Procrastination today is common. Not often do we plan to fail, instead 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

4. Never too early to start preparing for retirement Starting retirement savings early with $200/month additional savings at 5% per year over 10 years This hypothetical example is shown for demonstration purposes only and doesn’t represent any specific product or investment. These figures don’t reflect taxes or product fees and expenses.

5. Retirement reality • Never too early to get started • Withdrawal rates also important

6. Withdrawal rates are important This chart shows how long retirement savings may 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 rate of return, compounded monthly. This hypothetical example does not represent the performance of any specific investment product, taxes, or product fees. Rate of withdrawal $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 4% 5% 6% 8% 65 80 88 95 110 This chart is for illustrative purposes only.

7. Agenda • Retirement today • Taking action • Refocus • Options • Putting it all together

8. 1 • Retirement today

9. Retirement landscape • 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

10. Retirement today • Refocus on 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

11. 2 • Taking action

12. Taking action 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

13. Saving more now can reduce amount of additional income needed later $5,000 401(k) $10,000 401(k) $7,000 Pension 74% $45,000 Social Security $16,000 Today Retirement This hypothetical example is for illustrative purposes only. The retirement income totals are for demonstration purposes only.

14. Saving more now can reduce amount of additional income needed later $5,000 401(k) 401(k) $3,000 $10,000 401(k) $15,000 $7,000 Pension 90% 74% $45,000 $42,000 Social Security $16,000 Today Retirement Assumes hypothetical 5% rate of distribution over 20 years This hypothetical example is for illustrative purposes only. The income totals are for demonstration purposes only. The additional savings is based on a 5% distribution over 20 years.

15. Taking action • 2. Control debt • 3. Working longer • Pension delays • Social Security delays • 4. Look at options to protect a portion of your income

16. 3 • Refocus on what you can control

17. Refocusing • REFOCUS on retirement expense strategies • Focus on what you can control • Help manage expenses • Survival income • Desired income

18. Legacy Desired Survival Refocusing on the levels of retirement expenses Three levels of retirement expenses Expenses Funds remaining for your beneficiaries 3 Lifestyle “extras” Expenses to cover your most basic needs

19. Refocusing by reviewing sources of income REVIEW sources of income • Help you gain control over sources by knowing where they are • Social Security • Defined Benefit plans • 401(k)s Please keep in mind that your producer must be currently registered with a broker/dealer to recommend the liquidation of funds held in securities products, including those within an IRA or other retirement plan, for the purchase of an annuity.

20. Welfare or charity Continued employment Nonqualified Assets (NQA) Roth IRA Traditional IRA Employer sponsored plans Social Security Refocusing by reviewing sources of income Seven sources of retirement income Sources of Income Not desirable Phase into retirement gradually 7 Mutual funds, CDs, stocks, bonds Tax-deferred/tax-free Contributions and rollovers Employer-sponsored plans The base

21. Refocusing on income protection strategies PROTECT a portion of your income • Supplementing defined contributionpension plans • Consider using annuities • More optional guarantees • Reliability of future income Guarantees are backed by the financial strength and claims paying ability of the issuing company.

22. 4 • Options

23. Options • Start with a clean mental slate • Rethink overall retirement strategies • Rethinking income in place of accumulation • You always have an asset base to work with

24. Options • Refocus on additional retirement issues • Beneficiaries updated/correct • Legacy • Life insurance • In addition to the death benefit provided, some policies can guarantee replacement income if either primary wage earner dies • Health care and long term care

25. Options 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

26. Options 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

27. Rethinking retirement strategies Rethinking retirement expenses Rethinking portfolio with longer-term goals Rethinking retirement annuities Options Rethinking retirement strategies 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

28. Options Health care and long term care • We often look at our retirement strategies based on our current good health status • Even with good health today, properly prepare for possible future health issues or health care needs of tomorrow The average health care cost for a couple retiring in 2010?1 $250,000 1USAToday, “Study: Retired couple will need $250,000 for health care,” March, 25, 2010

29. 5 • Putting it all together

30. Putting it all together • What if there are gaps between accumulation and income needs? • Refocusing our retirement financial strategies

31. Sources of Income Options Expenses Legacy Welfare or charity Lower your expectations Continued employment 7 5 Nonqualified assets (NQA) 3 Spend less and save more now Desired Roth IRA Decide to work longer Traditional IRA Take on more risk Survival Employer sponsored plans Combination (or all) of above Social Security Putting it all together • Five options for income/expense gaps

32. Current standardof living $ now (401(k)) $ additional (401(k)) $more Aggressive Moderate Conservative Retirement 70? Age 65 45 Putting it all together How do the 5 options work? Combinationof all options $ needed to supplement income 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. Time

33. Current standardof living $ additional (401(k)) $ more Moderate Conservative 65 68? 45 Putting it all together Combination most effective $ needed to supplement income 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. Time Age 65

34. Rethinking retirement strategies • Rethink your retirement strategies • Refocus on what you can control • Use the strategic workbook • Review your existing retirement strategies • Protect your retirement future

35. Summary • Retirement today • Taking action • Refocus • Options • Putting it all together

36. Wrap up • 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 and Allianz Life Insurance Company of New York, their affiliated companies, and their representatives and employees do not give legal or tax advice. • Guarantees are backed by the financial strength and claims-paying ability of the issuing company. Variable annuity guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. • Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. • Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit • Not insured by any federal government agency or NCUA/NCUSIF • Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com. In New York, products are issued by Allianz Life Insurance Company of New York, One Chase Manhattan Plaza, 38th Floor, New York, NY 10005-1423. www.allianzlife.com/newyork/. Variable products are distributed by their affiliate Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com. Only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance in the state of New York.

37. Thank you! • Questions?