What is an escalating annuity?
You can also choose to have the level of income you receive from your annuity to remain level or increase each year in payment. If you opt for an escalating annuity then, initially, the level of income you receive will be lower than what you would be payable from an escalating annuity. You can specify the level of annual increase you require, e.g. 3% or 5%, or you could arrange that it increase in line with the Retail Price Index, subject to a maximum of 5% per annum.
