A fixed income will give you a higher starting income than an increasing income but because the amount is fixed, its value can be eroded by inflation. An increasing income will give you a lower starting income than a fixed income. You can choose to increase your income in line with the Retail Price Index (RPI) if you are concerned about inflation. Or you can choose for it to increase by a fixed percentage each year so you know how much income you will get every year.

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