Level or Indexed Annuity? - Calculator
If considering an annuity, an essential question to ask is: "should I have a level or indexed annuity?"
The answer to this question will depend on your own personal circumstances; however, it is vital to have an idea of the difference in future income between taking a level or an index-linked annuity.
Use this calculator to show how long it will take for the initial income from an index-linked annuity to reach the ongoing income of a level annuity. This should help you decide what type is right for you.
Depending on the rate of indexation, it could be many years before the amount of an indexed annuity reaches the income from a level annuity, but you should also bear in mind that if you choose a level annuity, any inflation will, over time, erode the 'buying-power' of your annuity income.
