How Does Inflation Affect Annuities? 
Inflation can affect the purchase of a product , especially if the product yields a return below the inflationary rate , i.e. you lose purchasing power . If the fixed annuity rate is better than inflation and it defers taxes until you use it , then that can be a value proposition worth reviewing . So calculate the cost of living and determine your tax bracket to see if annuities are a fit for you . 