What Is a Growing Annuity?

Are you worried about inflation eating away at your retirement purchasing power? A "growing annuity"—known in the financial industry as an increasing income or COLA (Cost of Living Adjustment) annuity—is specifically designed to solve this problem by providing paychecks that systematically increase over time. In this completely unfiltered video, Shawn from The Annuity Expert breaks down exactly how growing annuities work and the mathematical trade-offs you must consider before buying one. He explains the "break-even" rule: because increasing payouts always start out significantly lower than standard level payouts, it typically takes 7 to 8 years for the growing checks to finally surpass what you would have received with a fixed level payment. Shawn explains how these increases are calculated, whether via fixed percentages on immediate annuities (SPIAs) or via index performance and pricing indexes on deferred contracts. Most importantly, Shawn exposes a critical piece of fine print hidden in many annuity contracts: some carriers will completely stop your income increases as soon as your account cash value depletes to zero, leaving your income permanently flat just when you need inflation protection the most. To truly protect against long-term inflation, he reveals which specific carriers (like Athene and Allianz) offer contracts that guarantee your payouts will continue to grow even after your principal is completely drained. 👉 Read our full guide on growing annuities and inflation-adjusted payouts here: https://www.annuityexpertadvice.com/types-of-annuities/the-growing-annuity/ 📞 Call our team for free, no-obligation advice to safely evaluate your lifetime income options at: 770-755-1565 ⏱️ Video Chapters: 0:00 - Intro: What is a growing annuity? 0:14 - The industry terms: Increasing Income and COLA payouts 0:33 - The Trade-off: Lower starting paychecks vs. Level income 0:48 - The 7 to 8-Year Break-Even Point 1:36 - How COLA works on Immediate Annuities (SPIAs & DIAs) 1:55 - How increasing income works on Deferred Annuities (Index & CPI tracking) 2:21 - The Fine Print Trap: Do your increases stop when your account hits zero? 2:42 - Top Carrier Recommendations (Allianz vs. Athene) 3:27 - Final Verdict: How to compare level vs. increasing quotes apples-to-apples