As the market for single premium immediate and deferred income annuities heats up, a calculation you can use to compare competing products and estimate embedded costs is called the Money's Worth Ratio. The concept was developed in a 1999 analysis by Olivia Mitchell, James Poterra, Mark Warshawsky and Jeffrey Brown, which you can find here:
A less academic explanation is offered by the website Retire Early: http://www.retireearlyhomepage.com/annuity_costs.html
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