Glossary

Real versus nominal income is the distinction between the actual dollar amount of an income payment (nominal) and that payment's purchasing power after adjustment for inflation (real), used to assess whether an income stream maintains its real-terms standard of living over time. Why it matters The real-versus-nominal distinction is the most consequential framing distinction in long-horizon retirement income evaluation. Two arrangements that look comparable in nominal terms may div

Realized value is the share of the theoretical pooling benefit that a real lifetime income product actually delivers, expressed as a fraction of what a frictionless pool could produce for the same individual at the same planning age. Why it matters Evaluating a lifetime income product on its own terms requires knowing how much of the theoretical pooling benefit it actually delivers. Realized value is that figure. Because the calculation requires a reference benchmark that sits out

A registered index-linked annuity (RILA) is a deferred annuity in which the crediting rate is linked to the performance of a specified market index, with the contract owner retaining a defined portion of downside risk through a buffer or floor structure and the insurer setting caps, participation rates, and other parameters that govern upside crediting. Why it matters The RILA occupies a structural position between the fixed indexed annuity (full principal protection, lower upside