Lifetime Income Starting When You Need It
In exchange for a portion of your retirement savings, an insurance company will provide you with a steady monthly income stream that can begin at a date of your choosing, and last for your lifetime or for a set number of years. A Deferred Income Annuity allows you to defer your income payments for as little as 13 months, to as long as 40 years.
We purchased a Deferred Income Annuity while still working and saving for retirement. By deferring payments for 10 years, we were able to meet our income needs with a smaller up-front deposit than would have been required with an immediate annuity, and continue to invest the rest of our money.