Roll-up rate is the guaranteed percentage by which an annuity's income benefit base or rider value increases each year during the deferral period, regardless of actual market performance. It is commonly associated with income riders on fixed indexed annuities, variable annuities, and some RILA contracts. The roll-up rate, which might be simple or compound, applies to an accounting value used to calculate future guaranteed lifetime income, not necessarily the contract's actual cash value. Higher roll-up rates can be attractive in illustrations but often come with trade-offs such as higher rider fees, more restrictive payout factors, or limited investment choices. Understanding the difference between roll-up rate, actual account growth, and lifetime payout percentages is critical when evaluating income-focused annuity designs.

In retirement income planning, advisors highlight roll-up rate when comparing income riders across carriers. Illustrations show how a 5-8 percent roll-up rate can grow the income base over ten or more years before activating lifetime income. Advisors stress that the roll-up applies to a benefit base, not a cash account, and that the actual income received depends on both the grown base and the age-based payout factor at election. Compliance and best-interest reviews encourage advisors to look beyond headline roll-up rates and evaluate total fees, liquidity, investment constraints, and company strength. Clear explanation of roll-up rate helps clients see it as one component of an income solution rather than a stand-alone promise of investment return.