Retirement Annuity Design in an Inflationary Climate

Zvi Bodie () and James Pesando

No 896, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

Date: 1982-05
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published as Bodie, Zvi and James E. Pesando. "Retirement Annuity Design in an Inflationary Climate." Financial Aspects of the U.S. Pension System, edited by Zvi Bodie and John B. Shoven. Chicago: University of Chicago Press, (1983), pp . 291-324 and 322-323.
Published as Retirement Annuity Design in an Inflationary Climate , Zvi Bodie, James E. Pesando. in Financial Aspects of the United States Pension System , Bodie and Shoven. 1983

Downloads: (external link)
http://www.nber.org/papers/w0896.pdf (application/pdf)

Related works:
Chapter: Retirement Annuity Design in an Inflationary Climate (1983)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:0896

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w0896

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().