This review is from Growth and Guaranteed Income Annuities from Fidelity Investments
sage-am said
What they don't tell you is that the capital preservation is only in terms of " Nominal " sense and not " Real " terms. In other words e.g. if your original capital was $100,000, Ten years later you will get $100,000 which will be worth a lot less than today's value because of the inflation. So in reality , there is no capital preservation in " Real " terms.

