Planning your retirement  

Having achieved a lot in your working days, you want to enjoy untroubled years when you are retired. More importantly, you want to maintain the lifestyle you relish now. Why not start planning for your retirement soon? The earlier you begin to save, the easier it is to build an asset base for those silver years. Allianz Global Investors offers a wide range of products that will help you to take the right steps.

Shifting assets limits risks

Planning your retirement requires a long-term investment plan. Recommending investment funds as ideal instruments, we suggest shifting the asset allocation over the years. Starting with a large amount of equities in your portfolio in younger years is no mistake as you can profit from their high yield for a period of ten years or more. In order to limit risks towards the end of the investment period, we encourage you to shift your assets from equities to fixed income bonds about five years before the end of maturity.

Choice at maturity

Having built considerable wealth, you can take your choice at maturity. Depending on other incomes, you either go for capital depletion or you opt for capital maintenance. If you decide on capital depletion, you allow yourself a monthly payment made up of returns and parts of the asset base, consequently reducing assets and returns over the years. Opting for capital maintenance, you do not touch the asset base but use only its return to boost your retirement pay. Alternatively, you can mix both methods. Retiring at the age of 60, you could maintain your capital till the age of 75 and then start depleting it slowly.