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

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

A manufacturing employer with lower-income employees could adopt an immediate annuity at age 67 as a default.

From The Wall Street Journal • Oct. 18, 2025

If you don’t have enough guaranteed income to cover essential living costs, though, an immediate annuity could fill in the gap, says Wade Pfau, author of “Retirement Planning Guidebook.”

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

By deferring the payout, consumers can purchase a much larger income stream than with an immediate annuity.

From Forbes • Nov. 4, 2014