Life Annuities: An Optimal Product for Retirement Income

摘要

The origin of life annuities dates back thousands of years. In Life Annuities: An Optimal Product for Retirement Income, Moshe A. Milevsky of York University notes that the concept behind modern annuities can be traced to English astronomer Edmond Halley. In 1693, Halley devised a formula for exchanging a lump sum for a lifetime stream of income based on the annuitant's age.Few other financial contracts are as simple and useful as the immediate life annuity, which guarantees annuitants income that lasts as long as they do. Yet, immediate annuities are often seen as the financial equivalent of the kid who gets sand kicked in his face (for those of us old enough to remember the Charles Atlas ads).