Insight annuitization headroom illustrative SPIA

Illustrative single-premium annuity: premium = min(25% of the largest liquid account, $250,000); monthly income = premium × spiaPayoutRate(startAge) / 12.

Field: Illustrative SPIA premium and income Unit: US dollars Basis: nominal dollars Computed by: Engine Status: Complete chain

Appears in: insights (annuitization-headroom card rationale "Trading $X ... (~$Y/mo)")

Calculation records

• Illustrative SPIA premium and monthly payout from unused longevity headroom Model record, justified by derivation

  Purpose: A bounded quarter-account SPIA illustration for a planning-age-95-or-later plan that holds no annuity or pension covering the floor.

  Statement: For a plan whose maximum planning age is at least 95, with a qualifying largest cash-or-taxable account of at least $100,000 and no annuity or pension covering the floor: premium = min(0.25 × liquidBalance, $250,000); monthly payout = premium × spiaPayoutRate(startAge) / 12, where startAge = min(95, max(currentAge, 65)) and currentAge is that of the person model/peopleOrder.ts#canonicalFirstPerson puts first (the older; between two people born the same day, the sex order female, male, average and then the smaller id by ordinal comparison decide, so for two people with the same birth date and sex renaming the ids can move the annuitant and every figure on that life), whoever is listed first, whom the card names and on whose life the previewed annuity is written (decision D-PEOPLE-ORDER). Units: nominal dollars. Rounding: none; the production function returns a binary float, formatted to whole dollars only at the card.

  Formula: premium = min(0.25 L, 250000); monthly = premium × r(startAge) / 12

  • L: Largest qualifying liquid (cash or taxable) account balance (unit: usd) (domain: L >= 100000)
  • r(startAge): Annual SPIA payout rate as a fraction of premium, already resolved by spiaPayoutRate (unit: 1) (domain: r > 0)
  • startAge: min(95, max(currentAge, 65)) (unit: years) (domain: 65 <= startAge <= 95)

  Timing: illustration at the projection start year; payout begins at startAge

  Rounding: the card publishes whole-dollar strings (formatWholeUsd, Math.round) and the evidence asserts the published figure; no rounding before that

  Limits:

  • An illustration, not a carrier quote, recommendation, or claim that the payout is optimal or guaranteed
  • The worksheet supplies the already-resolved spiaPayoutRate(startAge) = 6.6%/year; the evidence passes that rate through rather than re-quoting the table
  • startAge is clamped to [65, 95], so a rate below the age-65 table point is not reachable without substituting the resolved rate

  Provenance: derived by codex, implemented by grok.

  Independent review: cursor

  Gates (6 of 6 pass): fixture registers a test: pass; pins resolve: pass; families exist: pass; worksheet exists: pass; mutation receipt exists: pass; provenance independent: pass

  Worksheet: insight-annuitization-headroom-illustrative-spia.md Mutation receipt: insight-annuitization-headroom-illustrative-spia.mutation.md

  Evidence tests: annuitizationHeadroom.evidence.test.ts

  Implemented in: annuitizationHeadroom.ts; peopleOrder.ts

  Is the number of: insight-annuitization-headroom-illustrative-spia

Engine source: engine/src/insights/detectors/annuitizationHeadroom.ts (annuitizationHeadroom.screen (premium, monthly))