Inflation-Adjusted Annuity
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An Inflation-Adjusted Annuity is an annuity investment that guarantees a real rate of return at or above inflation.
References
2013
- http://www.investopedia.com/terms/i/inflationprotectedannuity.asp
- QUOTE: An annuity investment that guarantees a real rate of return at or above inflation. The real rate of return is the nominal return, less the inflation rate, thus protecting annuitants and beneficiary investors from inflation.
Inflation-protected annuities are becoming more popular with annuity investors who are worried about the risk of inflation decreasing the purchasing power of their money as they age.
- QUOTE: An annuity investment that guarantees a real rate of return at or above inflation. The real rate of return is the nominal return, less the inflation rate, thus protecting annuitants and beneficiary investors from inflation.