Inflation-Protected Annuity (IPA)
An annuity investment that guarantees a real rate of return at or above inflation. The real rate of return is the nominal return, less the inflation rate, thus protecting annuitants and beneficiary investors from inflation. Investopedia Says:
Inflation-protected annuities are becoming more popular with annuity investors who are worried about the risk of inflation decreasing the purchasing power of their money as they age. Related Terms:
Annuity
Consumer Price Index - CPI
Inflation
Inflation-Protected Security - IPS
Inflationary Risk
Real Rate of Return |