Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Immediate Annuities and Inflation

Sunday, May 23, 2010 - 10:38 AM
Inflation is one of the risks of immediate annuities which guarantee a fixed payout for life. This WSJ article reviews this issue and some options:
Some annuities will raise the payout based on changes in the CPI while others offer contracts where the payout is increased by a fixed amount -- such as 2% or 3% -- every year for life. Some companies offer both options.
1
Ken TuminKen Tumin5,473 posts since
Nov 29, 2009
Rep Points: 125,800
Reply