Annuity roll-up rate is the guaranteed annual growth rate applied to an income base or benefit base within certain annuity riders, typically expressed as a simple or compound percentage. The roll-up rate increases the internal value used to calculate future lifetime income or death benefits, even if the contractTMs actual account value grows more slowly. Roll-up periods are usually limited to a set number of years or to a maximum age. While high roll-up rates can be appealing, they apply to calculation values, not necessarily to cash-surrender amounts, and are balanced by rider fees and other contract limitations.

Advisors highlight annuity roll-up rates when comparing income riders, showing how different rates and periods affect future income bases. They clarify that a 7 or 8 percent roll-up is not a guaranteed investment return but a guaranteed increase to the value used for income calculations. Advisors model the impact of delaying income to maximize roll-up benefits versus starting income earlier. In suitability reviews, they avoid overselling roll-up rates as "investment performance" and instead tie them explicitly to income guarantees. Understanding annuity roll-up rates helps advisors communicate nuanced guarantees accurately and avoid misaligned expectations.