Annuities Advice: Escalation?
Escalation is an increase to your pension or annuity once it is in payment. Level incomes don’t increase – they remain the same.
If you would like to see your annuity increase in payment every year, you can link this to RPI, CPI or at a fixed-rate e.g. 3/5%. These annuities will pay significantly less in the first few years in order to allow for higher payments later on.