Jump to ContentJump to Main Navigation
Retirement IncomeRisks and Strategies$
Users without a subscription are not able to see the full content.

Mark J. Warshawsky

Print publication date: 2011

Print ISBN-13: 9780262016933

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262016933.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use (for details see http://www.mitpress.universitypressscholarship.com/page/privacy-policy).date: 19 October 2017

Recent Developments in Life Annuity Markets and Products

Recent Developments in Life Annuity Markets and Products

Chapter:
(p.37) 2 Recent Developments in Life Annuity Markets and Products
Source:
Retirement Income
Author(s):

Mark J. Warshawsky

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262016933.003.0002

This chapter reviews recent developments in markets for traditional life annuities and describes a number of new products. In particular, it looks at trends in, and the volatility over time of, daily simulated and actual market quotes of fixed lifetime monthly payments from single-premium immediate annuities (SPIAs) issued for $100,000. The chapter then explains how variable immediate annuity works, making the initial payout fixed across time of issuance, but introducing subsequent volatility in the stream of lifetime payouts. It also briefly explains new life annuity products and features that make the life annuity more flexible or comprehensive—inflation-indexed, enhanced liquidity, individual “defined benefit,” and lifelong distribution products. Finally, the chapter concludes with a brief analysis of the possible implications of these trends in markets and products for retirement plan design, policy, and strategy.

Keywords:   traditional life annuities, immediate annuities, SPIAs, variable immediate annuity, volatility, lifetime payouts

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.