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

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

The money used to buy an immediate annuity won’t be considered part of your retirement funds when it’s time to calculate required minimum distributions, which usually must begin at 73.

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