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Inflation is a significant factor to be considered at retirement, and buying a Fixed Annuity means that your purchasing power will reduce over time due to inflation.
An annuity linked to the retail price index (RPI) will ensure that your purchasing power is maintained, however indexed annuities provide an initial income which is significantly less than a level annuity.
If you are retiring at a younger age then future inflation is more of a concern. In addition your family history of longevity is a factor to take into consideration, as the longer you live into retirement, the more likely you are to be affected by inflation.