Inflation-Protected Annuity - IPA
An annuity investment that guarantees a real rate of return at or above inflation. The real rate of return is the nominal return, less the inflation rate, thus protecting annuitants and beneficiary investors from inflation.
Investopedia Commentary
Inflation-protected annuities are becoming more popular with annuity investors who are worried about the risk of inflation decreasing the purchasing power of their money as they age.
Related Links
Inflation-Protected Annuities: Part Of A Solid Financial Plan
Inflation-Protected Securities - the Missing Link
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Equity-Indexed Annuities-A Complex Choice
See also: Annuity, Consumer Price Index - CPI, Inflation, Inflation-Protected Security - IPS, Inflationary Risk, Real Rate of Return
Also spelled: IPA