Defined terms for the annuity market and lifetime income landscape.
The default effect is the empirical regularity that when a decision has a default outcome that applies if the individual takes no action, most individuals end up with that outcome, at rates well above what would occur if the same choice were presented without a default.
A default investment is the investment option into which a defined contribution plan directs participant contributions when the participant has not made an affirmative election among the plan's investment choices.
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.
