RILAs: Buffers are Still Much Better than Floors
September 13, 2023 by David Blanchett
Registered index-linked annuities (RILAs), also called indexed-variable annuities and structured annuities, continue to gather significant assets. I originally released a paper for the Alliance for Lifetime Income, as well as series of articles in Advisor Perspectives (see here, here, here and here), exploring RILAs in April 2021. In one particular article, I noted that buffer RILAs were significantly more efficient than floor RILAs. These findings are worth revisiting given the change in market conditions since then (e.g., the increase in bond yields).