Defined terms for the annuity market and lifetime income landscape.
Pooling efficiency is the degree to which a lifetime income pool delivers the structural benefit available from mortality pooling, given the pool's size, governance design, and operating costs.
Pooling multiplier is the factor by which the income produced per dollar of premium increases when capital is contributed to a mortality pool rather than self-managed, holding planning horizon and assumed return constant.
Portability of lifetime income options is the participant-facing right — addressed by the SECURE Act — to preserve or transfer a lifetime income arrangement when a plan sponsor discontinues it or the participant separates from the plan, avoiding forced surrender below actuarial value.
Portfolio withdrawal strategy is any structured approach to drawing income from an investment portfolio in retirement, specifying the withdrawal amount, adjustment rule over time, and asset allocation intended to sustain the withdrawals over the planning horizon.
Precautionary savings motive is the desire to hold savings against uncertain future expenses, particularly health costs, long-term care, and unexpected obligations, which raises the value an individual places on retaining unrestricted access to capital during retirement.
