immediate annuity

American  

noun

1. an annuity bought with a single premium, with payments to the annuitant to begin at the end of one payment period, as a month or a year.

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immediate annuity British  

noun

1. an annuity that starts less than a year after its purchase Compare deferred annuity

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Example Sentences

An immediate annuity gives you income immediately, as its name suggests, whereas you may have to wait 12 months with other annuity contracts.

From MarketWatch • Feb. 9, 2026

State Street’s IncomeWise lets older workers put up to 25% of their nest egg into a deferred annuity that starts payments at age 78, providing a higher income than an immediate annuity.

From The Wall Street Journal • Dec. 3, 2025

But buying an immediate annuity — also known as an income annuity or a fixed immediate annuity — is effectively irreversible, so you’ll want to choose carefully.

From Seattle Times • Sep. 18, 2023

If your wife purchased an immediate annuity, which offers a stream of payments in return for a lump sum, then she probably can’t change her mind since those transactions are effectively irreversible.

From Los Angeles Times • Sep. 17, 2023

By deferring the payout, consumers can purchase a much larger income stream than with an immediate annuity.

From Forbes • Nov. 4, 2014