Glossary

Decumulation is the phase of an individual's financial life in which accumulated savings are converted into a stream of consumption, in contrast to the accumulation phase in which those savings are built up. Why it matters Decumulation is the phase in which longevity risk operates as a present rather than a future problem, and it is the phase within which every lifetime income arrangement is constructed and evaluated. The mathematics differs structurally from accumulation: depleti

Deferral multiplier is the factor by which the income produced per dollar of premium increases when income commencement is deferred to a future date, holding all other parameters constant. Why it matters A deferred income annuity produces materially more lifetime income per dollar of premium than an immediately commencing annuity at the same age, even after accounting for the years of postponed payments. The deferral multiplier names this effect and makes its size measurable. It i