Do Annuities Increase Each Year?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Annuity Account Increase

Annuities can potentially increase each year, depending on the type of annuity and the options selected.

Here’s a breakdown by annuity type:

  • Multi-Year Guaranteed Annuities (MYGAs) and Fixed Annuities: Generally, yes. These annuities often provide a guaranteed rate of interest, causing the account balance to grow each year.
  • Fixed Indexed Annuities: Yes, if the declared fixed rate option is chosen instead of the index-linked strategies. The increase depends on the performance of the chosen index or the fixed rate.
  • Variable Annuities: Typically, no. The value of a variable annuity is linked to the performance of investment options, such as mutual funds. It can increase or decrease based on market conditions.
  • Single Premium Immediate Annuities (SPIAs): No, SPIAs usually provide fixed payments that do not change over time.

Our annuity payout calculator provides clarity on your investment’s growth over time.

Income Increase

The income from an annuity will only increase each year if an increasing income option is selected. This option allows the annuity payments to rise, often to keep up with inflation or a predetermined schedule.

Annuity Types and Yearly Increase Potential

Annuity TypeAccount IncreaseIncome Increase Option
MYGAs and FixedYesAvailable
Fixed IndexedConditionalAvailable
SPIAsNoNot Typical


Whether an annuity increases each year depends on its type and the selected options. Understanding these differences is crucial for making informed decisions about retirement income. Contact us today for a free quote.

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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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