Defined terms for the annuity market and lifetime income landscape.
A fixed indexed annuity (FIA) is a deferred fixed annuity in which the crediting rate is determined by a formula tied to the performance of a specified market index, subject to caps, participation rates, and spreads set by the insurer, with principal protected from direct market loss. Why it matters The fixed indexed annuity is the largest annuity product category by sales in the United States. Its structure combines principal protection with index-linked upside, but the upside is
A floor-and-upside approach is a retirement income strategy that pairs guaranteed-income arrangements covering essential consumption (the floor) with self-managed investments providing additional and discretionary income (the upside), explicitly separating the two structural functions within a single plan. Why it matters The floor-and-upside approach makes operational the structural distinction between income that must be reliable and income that may vary, and it produces a plan c
