Defined terms for the annuity market and lifetime income landscape.
A market value adjustment is a contractual adjustment applied to the amount payable on a withdrawal or surrender from a deferred annuity, calculated by reference to the change in interest rates or a specified index between the time of contract issue and the time of withdrawal, and operating to increase or decrease the payable amount accordingly. Why it matters The market value adjustment is the mechanism by which deferred annuity contracts pass a portion of interest rate risk back
