PT  - JOURNAL ARTICLE
AU  - S. Gowri Shankar
TI  - Proposal for an Innovative Security for Retirees
AID  - 10.3905/jor.2016.4.2.037
DP  - 2016 Oct 31
TA  - The Journal of Retirement
PG  - 37--43
VI  - 4
IP  - 2
4099  - https://pm-research.com/content/4/2/37.short
4100  - https://pm-research.com/content/4/2/37.full
AB  - The article advocates for the issue of a new type of U.S. Treasury security to help retirees with modest savings earn a safe, steady retirement income. In contrast with existing interest-paying securities, this new security would pay out both principal and interest as an inflation-adjusted annuity over 20 or 25 years. Private financial institutions can also seize this opportunity to cater to a growing market by creating a synthetic, Treasury asset-backed security with the same characteristics. By investing in this safe security and in a deferred-income (longevity insurance) policy, retirees would be able to earn an inflation-adjusted income without the stress of managing a retirement portfolio or irrevocably committing their savings to an immediate annuity.TOPICS: Retirement, fixed income and structured finance, legal/regulatory/public policy