There are many concerns about inflation in light of recent government stimulus programs, but deflation can also be a concern for owners of annuities.
In the UK, owners of inflation linked annuities are being impacted by the biggest monthly drop in the retail price index since 1948:
"Standard Life has already written to its 25,000 customers with RPI-linked annuities to warn them that their income is set to fall, and similar annuities from Prudential will also pay out less."
Source: Financial Times
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