Inflation-Protected Annuity - IPA

AAA

DEFINITION of '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 EXPLAINS 'Inflation-Protected Annuity - IPA'

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 TERMS
  1. Annuity

    A financial product sold by financial institutions that is designed ...
  2. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  3. Inflation

    The rate at which the general level of prices for goods and services ...
  4. Inflationary Risk

    The uncertainty over the future real value (after inflation) ...
  5. Real Rate Of Return

    The annual percentage return realized on an investment, which ...
  6. Inflation-Protected Security - ...

    A type of fixed-income investment that guarantees a real rate ...
Related Articles
  1. Introduction To Inflation-Protected ...
    Options & Futures

    Introduction To Inflation-Protected ...

  2. Explaining Types Of Fixed Annuities
    Bonds & Fixed Income

    Explaining Types Of Fixed Annuities

  3. Inflation-Protected Annuities: Part ...
    Retirement

    Inflation-Protected Annuities: Part ...

  4. Tips To Beat Inflation For Near-Retireees
    Investing News

    Tips To Beat Inflation For Near-Retireees

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center