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

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

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

From MarketWatch • Nov. 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