SOA Paper Examines Retirement Income Reality Gap
A recent paper sponsored by the...
An advanced life deferred annuity (ALDA) is the same as a longevity annuity or longevity insurance. This type of annuity is used to hedge longevity risk. In other words, an ALDA is used to protect someone from outliving their assets. The advanced life deferred annuity involves a single, lump sum premium payment at the onset of the contract period. The annuity payments are deferred or begin later in the contract owner's life. For example, a 65 year old person may buy an ALDA that begins providing annuity payments at age 80. The ALDA is a very efficient form of annuity and can very effectively provide protection against longevity risk.
A recent paper sponsored by the...
Good question.
First thing to consider is that--to my knowledge--there are only a few types of annuities offered by Swiss insurance companies.
Submitted by tom on
This discussion topic was originally posted in the form of a comment.
The general topic is how annuities compare to bonds. It is a natural question since both annuities and bonds provide owners with fixed payments.
We moved the comment here so that it can surface to a larger audience and hopefully generate further discussion and comments.
As noted below, the conceptual basis for this content is based on a great paper written a few years ago by Jason Scott--the Director of Retiree Research at Financial Engines.
The original post is as follows: