Level Annuity

Level Annuity | Pension Glossary













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Level Annuity

This type of annuity will give the policyholder the same amount of income regularly. It will not rise to cover cost of living increases. Although, it will provide a larger initial, the actually buying power of the pension may be reduced over time due to inflation. Even though this option can be affected by inflation, level annuities tend to be the most popular, probably because they offer the highest initial income.