0 used to describe a financial product that depends on an investment made by the company that provides it:
an investment-linked annuity
The availability of investment-linked annuities greatly reduces the optimal age.
In future work we hope to disaggregate the insurance products into investment-linked products, which are likely more risky than endowment funds.
They assumed that actuarial unfairness reduced the returns on nominal and investment-linked annuities by 50 and 100 basis points respectively.
When investment-linked annuities are also available, it becomes optimal for men and women to annuitize at 64 and at 71 respectively.
Income drawdown charges are far too high and investment-linked annuities should be made transferable.
Those variable or investment-linked annuities go some way to increasing the investment choice of annuitants.
Indeed, a number of annuity providers pointed out that investment-linked annuities have delivered better results in recent years than the traditional index-linked annuity.
I believe that something like 10 companies now provide investment-linked annuity products which obviously track, follow or are related to growth in the markets.
