Index Linked Annuities are also called Escalating Annuities or Dynamic Annuities. The sum the annuity company guarantees to pay you every month, for the rest of your life, is periodically raised by reference to an inflation Index. This gives you some protection from inflation. The initial monthly payments of an Index Linked Annuity will be lower than the monthly payment from a Level Annuity, but the total payout will be greater if you live long enough and inflation is not zero or negative. Thus an Index Linked Annuity is a product to mitigate the decline in purchasing power in retirement.
Another option is for the pension to rise by a set amount each year, say 2.5%. This is attractive if inflation stays low: it can lead to a higher initial monthly income than a full Index Linked Pension, with the benefits of some inflation risk mitigation.
The unique plan we produce for you may be a mix, including an Index Linked Annuity to mitigate the risk of inflation during your retirement.
Our initial appointment is free of charge – no matter how long it takes. Our annuity search is free. We are happy to meet at your home or office within London or Hertfordshire. It is likely we will be able to visit your home or office in the Home Counties and further afield. If you are further away, or you prefer, we offer meetings by SKYPE video-conferencing. Taking a little bit of time now can improve your standard of living in retirement quite substantially, especially if you qualify for an Impaired Life Annuity. Call us now to book an appointment to start the process. It is your first step to a better retirement.