Escalating Annuity
An escalating annuity provides a guaranteed income for life that increases each year, either by a fixed percentage or in line with a measure of inflation. Payments usually start lower than those from a level annuity, but grow over time to help you manage rising living costs.
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Escalating Annuity
An escalating annuity increases your income every year, either by a fixed rate or in line with inflation. That way, your income keeps pace with the rising cost of living
Pros:
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Helps protect income against inflation over time.
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Predictable, gradual increases provide budgeting confidence.
Cons:
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Lower initial income compared to level annuities.
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Inflation-linked versions cost more upfront.
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