• Corpus ID: 150674897

A new strategy to guarantee retirement income using TIPS and longevity insurance

  title={A new strategy to guarantee retirement income using TIPS and longevity insurance},
  author={S Gowri Shankar},
  journal={Financial Services Review},
  • S. Shankar
  • Published 1 April 2009
  • Economics
  • Financial Services Review
Abstract Retirees investing their savings in stocks and bonds face the risk of financial ruin even whenwithdrawing as little as 4% annually. This paper proposes a new investment strategy using TreasuryInflation Protected Securities and longevity insurance that would guarantee real annual withdrawalrates in excess of 5% without any risk of financial ruin. The strategy can be implemented at minimalcost by retirees and their financial advisers. Institutional providers can use this strategy to… 

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