QUESTION:

annual increases

If I buy a life only fixed annuity with annual increases of 5% is that increase automatic every year or does it only go up to 5% if inlation (COLA) goes to 5%?
asked by Puzzled, 11/1/2010
Categories: Retired, Retirement Income, Annuities, Annuity Calculators
ANSWERS:
Answered by: Jason B, 11/02/10
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Generally that wording refers to an automatic increase of 5% per year, irrespective of the current COLA or inflation rate. However, you should ask the issuing company for more details to ensure that this is how it functions if you are considering a specific annuity program

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Answered by: Puzzled, 11/03/10
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Thank you Jason.
I didn't realize that the figures in the calculator only apply to some issuing companies.

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