How Inflation Eats Your Fixed Annuity Income

Inflation and Your Money with Fexingo: Protecting Purchasing Power and Beating Inflation · Aug 26, 2026 · 10m · transcript

In this episode, Lucas and Luna dig into a retirement income tool that sounds bulletproof: the fixed annuity. With inflation running hotter than the typical 3 or 4 percent payout these products offer, the purchasing power of that guaranteed income can shrink silently. They walk through a real example: a $500,000 annuity paying 4.5 percent, and what that income is actually worth after 10 years of 3.5 percent inflation. They also explore why annuities often lack cost-of-living adjustments, how the current rate environment at 3.63 percent on the fed funds rate changes the calculus, and what…