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

“The single-premium immediate annuity is one of the most popular forms of annuity and the most efficient,” said Josh Weinstein, vice president of lifetime income solutions at Fidelity.

From MarketWatch

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

Meanwhile, customers with their retirement accounts at Vanguard can still purchase a single premium immediate annuity at retirement through Vanguard’s third-party partner.

From MarketWatch

A single-premium immediate annuity sold by insurers and brokerage firms — where you hand over a sum of money and the company invests it — can also provide monthly lifetime income.

From MarketWatch

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