Unlike an immediate annuity, which starts paying income right after you buy it, deferred annuities are delayed until certain thresholds have been attained, like age or until a specified future date. A deferred annuity also allows the investor to make payments that accumulate on a tax-deferred basis over a period of years. A deferred annuity can either be variable or fixed and are designed as a retirement tool to help grow your assets, and provide a steady income once you are retired.

Fixed Annuity   Variable Annuity

Immediate Annuity   Deferred Annuity

Index Annuity Earnings on deferred annuities are only taxed upon withdrawal. You can make a lump sum annuity contribution, or you can make multiple contributions over time. A fixed deferred annuity generally offers a guarantee of principal and interest rate for a set period of time. Variable deferred annuities offer greater growth potential and investment flexibility with a stock and bond investment choices. Deferred annuities also provide a death benefit so that the beneficiary of the annuity are guaranteed the principal and the investment earnings.