Defined terms for the annuity market and lifetime income landscape.
Anchoring bias is the tendency for judgments about a quantity to be pulled toward a numerical value that has been recently encountered, even when that value is arbitrary or has no logical relationship to the quantity being judged.
Annual reset is a fixed indexed annuity crediting structure in which the index value is reset at each contract anniversary, with credited interest calculated from the index's movement during that annual period and locked in at the end, after which a new annual period begins from that reference.
The ARVA (annually recalculated virtual annuity) is a withdrawal strategy in which annual income is recalculated each year using current account value, remaining life expectancy, and a chosen valuation rate, used in the Longevity Standard framework as a self-managed baseline.
Annuitization is the conversion of a sum of capital into a stream of periodic income payments, typically continuing for the lifetime of the contract owner, in exchange for surrendering the right to access the capital as a lump sum.
