Selecting a guaranteed annuity : keeping up with inflation : retirement planning

In our previous article we discussed the importance of including provision for future increases to any guaranteed annuity as a feature of the annuity contract that you purchase upon retirement. The main reason for buying a guaranteed annuity is to provide you with protection from outliving your financial resources if you live for a very long time. An annuity that does not increase over time will quickly reduce in purchasing power and become meaningless no longer providing you with the longevity protection that you sought in the first place.