Effect of Inflation
How inflation erodes the value of
money
Can you remember how much you paid
for your first house and what your annual income was at
the time? How much would that house be worth now and how
much would you have to be earning to be able to buy it?
This is the effect of inflation.
When choosing an annuity you must
consider carefully what effect inflation will have on
your spending power in the future, this is particularly
important if the income from the annuity makes up a high
proportion of your overall income.
The following calculator will show the effect of
inflation over any period.
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