5 Facts About a Big New Retirement Principal Protection Paper
October 29, 2019 by Allison Bell
Having a lifetime income guarantee at age 85 may be fine, but having a retirement savings principal protection guarantee in place at age 67 is just too expensive, four economists say.
Vanya Horneff and three other economists analyze the value of principal protection in a new working paper posted on the website of the National Bureau of Economic Research (NBER).
A working paper is a preview version of a research paper. It may not have gone through the full academic peer review process.
Horneff and her colleagues assessed principal protection guarantee costs and benefits by analyzing data from Germany’s “Riester program.”
Here are five facts about the paper, for life insurance agents and other financial professionals with an interest in the U.S. annuity market.