Annuity and Inflation

[roker]

I have had an Annuity since 2008, part of is index link to inflation, but what I am receiving now is the same as I was receiving in 2008. Can I assume that there has been no inflation during this time? and how is it calculated?

 

[Steven Barrett]

I have had an Annuity since 2008, part of is index link to inflation, but what I am receiving now is the same as I was receiving in 2008. Can I assume that there has been no inflation during this time? and how is it calculated?

According to Financial Express, CPI since 2008 is:

2008 - 1.15%
2009 - -5%
2010 - 1.29%
2011 - 2.45%
2012 - 1.15%
2013 - 0.66%

 

[JoeRoberts]

ww

 

[roker]

Thanks SBarrett.
Is that a negative increase or is negative it just apply to 2009

 

[orka]

2009 is the only negative year - the others are positive numbers so if your annuity is linked to CPI you should have received some increases by now. The original annuity documentation would have set out exactly what index was to be used for calculating inflation and what minimum (usually 0%) and maximum (I think 3%-5% would be typical) would apply. Preferably find the documentation first so you can find out what index is used but you should definitely query this.

 

[huskerdu]

Has the amount ever changed ?
how often is is supposed to be recalculated, based on inflation ?

 

[pierboy]

Most annuities look at the cumulative increase which is possibly negative from the day annuity started to the most recent anniversary of that date