Shankar, S. Gowri, Proposal for an Innovative Security for Retirees (August 4, 2016). Journal of Retirement (JOR), Forthcoming. Available for download at SSRN: http://ssrn.com/abstract=2828360

[The author] “advocates for the issue of a new US Treasury security to help retirees with modest savings earn a safe, steady retirement income. The proposed new security would pay out both principal and interest as an inflation-adjusted annuity over 20 or 25 years, in contrast to traditional bonds that pay interest periodically and return the principal at maturity. I further propose that private financial institutions can and should create such an annuity synthetically, using a laddered Treasury bond portfolio, and offer it to retirees. Retirees would be able earn an inflation adjusted income by investing in this security and in a deferred income (longevity insurance) policy, without the stress of managing a retirement portfolio, or irrevocably committing their savings upfront in an immediate annuity.”