Fig. Percent Changes in Inflation Source US Bureau of Labor Statistics All Urban Consumers All Items, Seasonally Adjusted = .The nominal solution requires that you invest $,. each and every year. Again, though, after adjusting for inflation you end up with the same amount of money after years..Imagine a stream of indexed payments. Compute either the present value, or the interest or size of the payments or the number of terms or the inflation..A reader asked A salesman wants to sell me an immediate fixed annuity which will start paying me $, for the rest of my life. I’m turning years old in April and that sounds nice, but I’ve always thought that annuities are not the best option..
An inflation adjusted annuity aims to solve the problem by giving you an automatic cost of living increase every year. But the cost is steep. A $, inflation adjusted annuity policy from Prin.l Life Insurance offers a $ monthly payout for a year old man American General offers a $ monthly check..How Inflation Protected Annuities Work An IPA is similar to a regular immediate annuity, but its payments are indexed to the rate of inflation. However, oftentimes there is a cap, and investors don’t receive payments beyond this percentage. To learn more about the different types of annuities, see .