Defined terms for the annuity market and lifetime income landscape.
Safe harbor annuity selection is the fiduciary process established by ERISA Section 404(e), as added by the SECURE Act, that — when followed — provides plan fiduciaries with statutory protection in selecting an insurance carrier to provide an in-plan lifetime income option.
Safe withdrawal rate is the initial percentage of a retirement portfolio that an individual can withdraw in the first year, adjusted for inflation in subsequent years, with a specified probability of the portfolio sustaining the withdrawals over a stated planning horizon.
Scenario analysis is an analytical technique that constructs specific coherent combinations of inputs representing alternative future conditions and reports the model's output under each combination.
