Defined terms for the annuity market and lifetime income landscape.
Self-annuitization is the self-managed approach to producing retirement income from accumulated savings, in which an individual draws down their own assets to fund income without pooling longevity risk with others or transferring it to an insurer.
Self-selection bias is the systematic difference between individuals who choose to enter an arrangement and the broader population from which they are drawn, arising from unobserved characteristics that make participation more attractive to some than to others.
Senescence, in cellular biology, is the state in which cells stop dividing but remain metabolically active and continue to influence surrounding tissue, while in broader usage the term refers more generally to the aging of organisms over time.
A separate account is a legally distinct pool of assets maintained by an insurance carrier — segregated from the general account — that holds subaccount investments supporting variable annuity and RILA contracts, dedicated to those contracts and unavailable to general creditors in insolvency.
