deferred annuity

American  

noun

1. an annuity that starts at the end of a specified period or after the annuitant reaches a certain age.

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deferred annuity British  

noun

1. an annuity that commences not less than one year after the final purchase premium Compare immediate annuity

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Example Sentences

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

T. Rowe Price Group launched a fund in January for retirees that delivers a 7.5% payout rate on the balance invested, until deferred annuity payments start 15 years later.

From The Wall Street Journal

If she purchased a deferred annuity, though, she has more options.

From Los Angeles Times

Your wife won’t face taxes if she switches from a deferred annuity to a CD, since changing investments within an IRA isn’t considered a taxable event.

From Los Angeles Times

A deferred annuity’s primary advantage is tax deferral, which an IRA already offers.

From Los Angeles Times