Advanced Life Deferred Annuity

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.

Retirement Planning with TIPS and Longevity Annuities

Gowri Shankar of the University of Washington has published an article on the use of Treasury Inflation -Protected Securities ( TIPS ) and longevity annuities. Shankar suggests that a combination of TIPS and longevity insurance provides an optimal strategy when the objective is guaranteed retirement income . Shankar demonstrates that the combination affords the ability to sustain relatively high withdrawal rates while minimizing the probability of financial ruin in retirement. The strategy also...

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Calculating the Value of a Longevity Annuity

A longevity annuity is arguably the most efficient way to...

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Gallup Poll Indicates that Eighty Percent of Annuity Owners Have Incomes Less than $100,000

Findings from a recent Gallup poll suggest that annuity ownership in the United States is dominated by middle- income households and individuals. Eighty percent of annuity owners have income of less than $100,000, while only four percent of annuity owning households have incomes in excess of $200,000. Other poll findings include: Almost half of the respondents have household income less than $50,000. Seven out of ten annuity owners are retired. The average age of annuity owners is 70. Women...

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Advanced Life Deferred Annuity

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Advanced Life Deferred Annuity

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Inflation Protected Longevity Annuity

Submitted by tom on Mon, 08/24/2009 - 12:04

This post is a continuation of a question that was originally posted as a comment here:

http://www.annuitydigest.com/news/buffett-and-pictet-express-concerns-about-inflation#comment-119

The question is whether there are any advanced life deferred annuities that have inflation protection.

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The Wall Street Journal's Brett Arends on Annuities

Brett Arends writes a personal finance column for the Wall Street Journal. He is one of the more interesting and popular personal finance writers in the industry. Although a subscription is required to read the Wall Street Journal, Arends' column (among other Journal features) is highly recommended. For the past two weeks, Arends has written columns that focus on annuities. The columns can be accessed by clicking here and here . Both articles are highly recommended. Topics addressed include:...

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