@article {Shankar37, author = {S. Gowri Shankar}, title = {Proposal for an Innovative Security for Retirees}, volume = {4}, number = {2}, pages = {37--43}, year = {2016}, doi = {10.3905/jor.2016.4.2.037}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The article advocates for the issue of a new type of U.S. Treasury security to help retirees with modest savings earn a safe, steady retirement income. In contrast with existing interest-paying securities, this new security would pay out both principal and interest as an inflation-adjusted annuity over 20 or 25 years. Private financial institutions can also seize this opportunity to cater to a growing market by creating a synthetic, Treasury asset-backed security with the same characteristics. By investing in this safe security and in a deferred-income (longevity insurance) policy, retirees would be able to earn an inflation-adjusted income without the stress of managing a retirement portfolio or irrevocably committing their savings to an immediate annuity.TOPICS: Retirement, fixed income and structured finance, legal/regulatory/public policy}, issn = {2326-6899}, URL = {https://jor.pm-research.com/content/4/2/37}, eprint = {https://jor.pm-research.com/content/4/2/37.full.pdf}, journal = {The Journal of Retirement} }