NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Retirement Annuity Design in an Inflationary Climate

Zvi Bodie, James E. Pesando

NBER Working Paper No. 896 (Also Reprint No. r0765)
Issued in May 1982
NBER Program(s):   PE

This paper examines the tilt and risk-return characteristics of real retirement incomes provided by variable annuities tied to bills, long-term bonds, stocks and a mixed portfolio which combines all three. The analysis emphasizes the riskiness of the real value of benefits provided by conventional nominal annuities. The Rockefeller Foundation Plan, together with the "ad hoc" cost-of-living adjustments made by many large firms, are interpreted as representative market responses to increased inflation uncertainty. The paper examines the annuity designs implicit in these innovations, and shows them to be variants of the standard variable annuity.

download in pdf format
   (467 K)

email paper

This paper is available as PDF (467 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0896

Published:

Users who downloaded this paper also downloaded these:
Bodie w0442 Purchasing-Power Annuities: Financial Innovation for Stable Real Retirement Income in an Inflationary Environment
Brown, Mitchell, and Poterba w7812 Mortality Risk, Inflation Risk, and Annuity Products
Bodie w3009 Inflation Insurance
Bodie and Pesando Retirement Annuity Design in an Inflationary Climate
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us