Professor Moshe Milevsky describes how a guaranteed1 income annuity is similar to insurance to continue over a long life.
Mr. Milevsky is a professor of Finance at the Schulich School of Business at York University, Toronto, Canada.
Variable annuities are long-term, tax-deferred investments designed for retirement, involve risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.
1Guarantees are backed by the claims-paying ability of the issuing insurance company.
Annuities involve risks and may lose value.
Moshe Milevsky was paid for his commentary. His views do not necessarily reflect those of Jackson®.