Final answer:
The most accurate statement about variable annuities is that they mitigate the risk of superannuation and inflation, as they can provide income that increases with market performance, unlike fixed pensions which are vulnerable to inflation over time. Therefore, the correct option is B.
Step-by-step explanation:
The most accurate statement regarding variable annuities is that a variable annuity mitigates the risk of superannuation and inflation. Variable annuities offer a way for retirees to receive income that can potentially increase over time, with investment options typically linked to market performance. Unlike traditional fixed pensions, which are referred to as "defined benefits" plans, variable annuities can help protect retirees against the erosion of purchasing power due to inflation. This is because the payout amounts can vary based on the underlying investments, which may grow at a rate that outpaces inflation.
Option A suggests that variable annuities only mitigate the risk of superannuation, which is not complete because they also offer protection against inflation. Therefore, Option B is the most accurate. Option C, which claims that a variable annuity is always a deferred annuity, is not accurate because there are also immediate variable annuities available. Lastly, Option D is incorrect because variable annuities can be structured for single or multiple life expectancies.