I know that

*non*-CPI-Indexed ones do. For example I went to immediateannuities.com and got a quote that shows that a 60 year old male could pay a single $120k premium now in 2015, and then starting in 20 years time, in 2035 at age 80, they start getting monthly payments of $3,407 (nominal) for the rest of their life. (They get nothing if they don't survive the first 20 years.)

The question is, can you get a

*CPI-Indexed*version of this, so the quote would say the first monthly payment is some $X in 2015 dollars, which is then CPI-Indexed up to say 2035 dollars, and also continues to be CPI-Indexed after that. (Obviously if both quotes were actuarially fair, then $X would be much less than $3,407, and would still usually be somewhat less when translated to 2035 dollars, but the CPI-Indexed payments would usually increase and overtake the nominal payments in later years.)

Such annuities have an obvious retirement planning use that would appeal to some. If you retire at age 60, and get an annuity that starts at age 80, then you can budget your portfolio for a fixed 20 year period, and then the annuity kicks in (i.e. we're talking about the usual longevity insurance). Of course you take the risk that you don't last the first 20 years, and lose the premium, but if you make it, you benefit from the mortality credits, i.e. the survivors benefit from the non-survivors' premiums, as you'd expect.

But comparing the nominal and real ones (and we don't know the real ones even exist yet), the trouble with the nominal one is that $3,407 per month for a $120k premium (34.07% Cashflow Rate)*** may sound great, but who knows what $3,407 will buy after 20 years of future unknown inflation. I can't see how you could

*fully*rely on this to fund your later years (you could put a little money into one as part of a diverse retirement plan) since a future nominal income stream just isn't a truly safe spending-needs "floor". That's why a CPI-Indexed version would be much more useful for retirement planning.

So does anyone know if

*CPI-Indexed*Single-Premium Deferred Annuities actually exist right now, or if they are likely to in the future? Would you consider using them?

In the absence of these, there are alternatives, but they are not the same. The 60 year old male could buy a nominal or real SPIA to start payments immediately, but the premiums are much higher (e.g. $700k to get monthly payments of $3,407

*nominal*) and you may prefer to handle your own portfolio to cover the first predictable-length 20 years. Another option is to just handle your own portfolio with the intention of covering the first 20 years, while making sure you have enough in reserve to buy an annuity at age 80 if needed, which forgoes the 20 years mortality credits, but may save the premium if either you don't last that long, or if at 80 you find you don't need to resort to any annuity.

*** I also checked that an 80 year old male could pay a single $120k premium to get an immediate nominal $1,096 monthly payment. I also saw http://www.ssa.gov/oact/STATS/table4c6.html that about 58% of 60 year old males are expected to survive 20 years, and since

3,407/1,096 is about 3.11 which is also about (1.03)^{20}/(0.58)

then the deferred annuity is earning about 3% per year during the 20 years, and the mortality credits boost payouts by a factor of about 1/(0.58) which is about 1.72.