Fixed immediate annuities are often quoted without any kind of cost of living increase. However it might be a good idea to buy one with a increase built in to account for inflation in the long term. I usually use the immediateannuities.com website to get quick quotes on fixed immediate annuities but they don't have any options for inflation/COLA increase options on the annuities.
Fidelity has an estimator for fixed immediate annuity payouts. One nice feature of their estimator is that it also gives an option to get a 2% annual increase for the payments. I used their calculator and plugged in different ages and tested for single versus joint and with or without the 2% annual increase.
Here are the monthly payouts for an investment of $100,000 comparing different ages for 65, 55 and 45 years old as well as single versus 100% joint survivor and with or without the 2% annual increases :
|joint + 2%||$390||$319||$273|
That gives differences in payouts of :
A 2% annual increase is worth around 20-30% difference in thee value of the annuity. A higher cost of living increase would be worth more.