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Escalating annuities
Escalating annuities (often known as increasing annuities) increase the amount of income paid over the years.
There are two main types of escalating annuities: fixed rate escalating annuities and index linked annuities.
Fixed rate escalating annuities
Fixed rate escalating annuities start at a lower income than level annuities, but your income is guaranteed to increase at a fixed rate each year. Typically the fixed rate will be 3% or 5%.
Index linked annuities
Index linked annuities are commonly known as RPI linked annuities where the income from the annuity is linked to the Retail Prices Index. If the RPI over the year is 1% then your annuity will increase by 1%. If the RPI is 15% then your annuity income will rise by 15%. If however there is deflation and a negative RPI then your annuity income will fall.
To find out which annuity would best suit your needs, or if you already know what you need, complete the free, no obligation annuity quote form below . Our financial advisers will look at the current annuities marketplace and provide comparisons specific to your needs and requirements.
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