Level Annuity Definition

by Peter

reading_glass_1A level annuity will provide a higher level of initial income compared to using the open market option and choosing alternatives such an escalating or RPI linked annuity.

But remember if inflation remains low in the economy, it can take up to two decades for the income from an annuity with escalation built-in the reach the equivalent return from a level annuity. Equally however, if there are substantial rises inflation, those with a level annuity could see their standard of living fall, and their buying power reduced as the price of goods increase.

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