Any index – whether for stocks, bonds or real estate – is meant to be a representative indicator of the overall market, as opposed to capturing the price of a specific security or commodity for a given transaction. The same is true for the CANNEX PAY Index, which is meant to provide an indication of the lifetime yield that a retiree can expect from a single premium income annuity (SPIA). The CANNEX PAY Index emphasizes actual insurance (market) quotes, and makes minimal assumptions about the current and future economic environment, the term structure of interest rates or the so-called “appetite” of insurance companies for SPIA business. The CANNEX PAY Index can be replicated, tested and verified by anyone – and the component data values are made available, free of charge.
Benchmarks & Indices
PAY Index (USA)