Method of administering an annuity having payments that maintain or increase in purchasing power

A method of administering a single premium immediate annuity, the method comprising:

• recording a first economic indicator;
• providing at least one first income payment for a first predetermined time;
• recording a second economic indicator;
• calculating a payment adjustment based upon the first economic indicator and the second economic indicator;
• and
• calculating at least one second income payment for a second predetermined time, wherein the second income payment is adjusted by the payment adjustment.

A method of administering a single premium immediate annuity, the method comprising:

• selecting an annuity type from either a first annuity type having a specified purchasing power and a second annuity type having a fixed percentage increase in an income payment;
• specifying the first income payment for a first payment term;
• disbursing the first income payment;
• if the second annuity type is selected, increasing the first income payment by the fixed percentage increase;
• and
• if the first annuity type is selected;
• determining an adjustment to the first income payment, wherein the adjustment maintains the specified purchasing power;
• and
• applying the adjustment to the first income payment so that a second income payment for a second payment term has the same purchasing power as the first income payment.