The Implied Longevity Yield (ILY) measures the yield (or return) you would need to receive from an alternative investment in order to keep up with the income generating capability of an income annuity. This benchmark provides a perspective on when it might be the right time to annuitize. Here we compare the yield of an Income Annuity with a 10 Year Period Certain Guarantee with the 10 Year U.S. Treasury Bond. For more information on the methodology behind the ILY, see the research paper below.
Sample Calculation: Implied Longevity Yield (When Should I Buy an Income Annuity?)