Are Annuities Good During High Inflation?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Advantages of Annuities in High Inflation

  • Higher Payouts: During high inflation, annuities often offer higher payouts. This is because annuity rates are typically tied to interest rates, which generally rise in a high inflation environment. Higher interest rates can lead to increased annuity payouts.
  • Multi-Year Guaranteed Annuity Rates: Multi-Year Guaranteed Annuities can offer more attractive rates in a high-inflation environment. As interest rates rise, so do the guaranteed rates on these annuities, offering potentially higher returns.
  • Annuities with Increasing Income Riders: These annuities are particularly beneficial during periods of high inflation. They often include riders that allow retirement income to increase, sometimes tied to the Consumer Price Index (CPI). This means that as inflation rises, the retirement income from these annuities can also increase.
  • Stable Increased Payouts: Once the annuity payout has increased, it usually does not decrease. This stability can be a significant advantage during fluctuating economic conditions, as it provides a consistent income stream.

Benefits of Annuities in High Inflation

FeatureBenefits in High Inflation
Higher PayoutsIncreased income due to higher interest rates
Guaranteed RatesEnhanced returns with rising rates
Income RidersIncome increases with inflation
Stable PayoutsConsistent income regardless of market fluctuations


Annuities can be a good financial strategy during periods of high inflation. They offer benefits such as higher payouts and stable increased income, which can be tied to inflation indicators like the CPI. These features make annuities a potentially attractive option for those looking to safeguard their retirement income against the erosive effects of inflation.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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