Income Annuity With Inflation Protection

Deferred annuities come in many.

Income annuity with inflation protection. Pfau concludes that a portfolio utilizing the 4 rule has a high probability to fail but through changing the bond portion to a fixed index annuity and a 30 year inflation income rider of 4 there s a high chance of success. Principal financial is the only insurer currently offering an inflation indexed spia and as of early june 2019 100 000 would purchase an annual lifetime income of an initial 4 211 increasing with inflation each year. An inflation protected annuity ipa is an annuity that guarantees a real rate of return at or above inflation. This paper s findings suggest that fixed index annuities fias produce the best outcomes in terms of ongoing income and longevity protection for current and future retirees.