Defined terms for the annuity market and lifetime income landscape.
A market value adjustment is a contractual adjustment applied to a withdrawal or surrender from a deferred annuity, calculated by reference to changes in interest rates or a specified index between contract issue and the time of withdrawal, increasing or decreasing the payable amount.
Maximum drawdown is the largest percentage decline from peak to trough that a portfolio has experienced over a specified historical period, capturing the worst point-to-point decline it has suffered.
Mental accounting is the practice of treating money differently depending on where it is held, where it came from, or what it is intended for, rather than treating all resources as fungible.
The modern tontine revival is the 2010s–2020s academic and commercial reengagement with tontine-structured lifetime income arrangements, driven by published work by Forman, Sabin, Milevsky, and others, accompanied by commercial implementations in several jurisdictions.
