A large insurer is trying to help retirees use annuities to match income with the actual cost of living.

American General Life Insurance Company and the U.S. Life Insurance Company, units of American International Group Inc., have added an inflation-adjustment mechanism based on the Consumer Price Index to their Platinum Income Annuity contracts.

U.S. Life sells the underlying contract in New York, and American General Life sells the contract in the rest of the country.

U.S. Life and American General Life are responsible for backing the product guarantees.