Retirement Investing
Inflation-Linked Annuity
Definition
What is Inflation-Linked Annuity?
An annuity whose payments rise according to an inflationA sustained increase in the general price level, reducing the purchasing power of money. rule.
Example in practice
How This Looks in Practice
Monthly income increases annually with the stated price index.
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Related Terms
Retirement Investing
Withdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.
Retirement InvestingSafe Withdrawal Rate
An estimated withdrawal rate intended to support spending over a long retirement under stated assumptions.
Retirement InvestingSequence-of-Returns Risk
The risk that poor returns early in a withdrawal period cause lasting portfolio damage.
Estate PlanningEstate
The property, investments, rights, and obligations left by a person at death.