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

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

Right now, a woman who retires at 65 and buys a single premium immediate annuity can collect 7.6% a year for life, according to the latest market data available from annuity marketplace Immediate Annuities.

From MarketWatch • Mar. 26, 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

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