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

See Examples For:

immediate annuity

A woman retiring today at age 65 can spend $100,000 to secure a guaranteed income for life of $650 a month, or $7,800 a year, by purchasing a single-premium immediate annuity from an insurance company.

From MarketWatch ● Aug. 31, 2026

Between ages 59 ½ and 78, savers have the option to use some or all of the money associated with their insurance exposure to purchase an immediate annuity.

From The Wall Street Journal ● Jun. 10, 2026

Last week, the company announced a lineup of target-date funds where the fixed-income portion of the portfolio is designed to flow into a single-premium immediate annuity policy upon retirement.

From MarketWatch ● Dec. 17, 2025

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

Now may be a good time for retirees to buy an immediate annuity, since payouts are the highest they’ve been in a decade, says Rob Williams, managing director of wealth management at Charles Schwab.

From Seattle Times ● Sep. 18, 2023