Inflation
As we saw earlier, people are living longer. This fact would not be as alarming if we had zero percent inflation since a steady unchanged retirement income at a zero percent inflation rate could allow the senior to continue purchasing the same amount of goods each year. However, an increasing rate of inflation can dramatically impact where a senior lives, how a senior lives, and with whom a senior lives.

As a result, overcoming inflation is a need that the consumer wants solved. The annuity, through tax deferral, helps our customers overcome the real effects of inflation, less purchasing power. The chart at the bottom simply shows the loss of purchasing power assuming inflation. An annuity can give your customer more money later so that they can have more purchasing power later.