Assumed interest rate

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Assumed interest rate

Rate of interest used by an insurance company to calculate the payout on an annuity contract.

Assumed Interest Rate

In annuities, a component of how monthly payments to the annuitant are determined. It is the minimum interest rate that the annuity may accrue while the annuitant makes payments on it; the annuity may perform better than the assumed interest rate depending on how it is invested, but the assumed interest rate serves as a bottom for how much the annuitant will receive when he/she begins to draw payments.
References in periodicals archive ?
He said this is due to the Financial Supervisory Commission reducing assumed interest rates, restricting the yield leeway for insurance policies.
The government should immediately change its rules and bring its assumed interest rates into line with what pensioners can hope to receive.
This massive drop in income is bad enough without adding to the hardship by using assumed interest rates more on par with crime.
Using Pension Benefit Guaranty Corporation assumed interest rates (Letter Ruling 8924093).
Even though Greenspan said he didn't know how the Fed will vote on the issue next week, the stock market assumed interest rates will soon rise.
With lower assumed interest rates, many employers find themselves making little headway to reduce their pension deficits," said Mike Archer, a senior retirement consultant at Towers Watson.
On the Continent it is assumed interest rates will fall towards German levels in all the countries lining up to join the euro.
3 million (using conservative assumptions) mainly as a result of an increase in assumed interest rates and additional costs of issuance.
Negative margin has significantly improved with lower assumed interest rates and increased investment yield that alleviate the interest losses substantially compared to prior years.