Escalating Annuities

 

An escalating annuity provides a retirement income that will increase by a fixed percentage (e.g. 3% or 5%) rate every year as compared to an inflation-linked annuity that uses an inflation measure such as RPI. An Escalating annuity pays much less initially, but your income in later years could be higher in real terms than for a level or fixed annuities dependent on how long you live.

As with all decisions at retirement it pays to get expert annuity advice. Contact us for more information about escalating annuities, make sure that you maximise your income in retirement