Defined terms for the annuity market and lifetime income landscape.
A registered index-linked annuity (RILA) is a deferred annuity in which the crediting rate is linked to a market index, with the contract owner retaining a defined portion of downside risk through a buffer or floor and the insurer setting caps, participation rates, and other upside parameters.
Regulation Best Interest is an SEC rule adopted in 2019, effective June 30, 2020, that establishes a standard of conduct for broker-dealers when making a securities recommendation to a retail customer, requiring the broker-dealer to act in the retail customer's best interest.
Replacement rate is the ratio of retirement income to pre-retirement income, used as a planning target for how much of working-years earnings need to be replaced by retirement resources to maintain a comparable standard of living.
Replacements and exchanges is the category of transactions in which an existing annuity contract is replaced by a new annuity contract, governed by state regulatory rules that impose specific disclosure, comparison, and documentation requirements.
A required minimum distribution (RMD) is the minimum amount an individual must withdraw each year from a tax-advantaged retirement account beginning at a statutory age, calculated based on the account balance and the individual's remaining life expectancy under IRS tables.
