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    Types of Annuities

    Deferred Income Annuities Explained

    Deferred income annuities (DIAs) let you buy future guaranteed income today — locking in a paycheck that starts years later, often at a higher payout rate.

    Pre-retiree planning future income on a calendar timeline
    DIAs let you pre-purchase higher guaranteed income for the future.

    What Is a Deferred Income Annuity?

    A DIA is similar to an immediate annuity, except payments start at a future date — typically 2 to 40 years after purchase. The longer the deferral, the higher the eventual income.

    How They Work

    You contribute a lump sum (or a series of premiums). The carrier guarantees a future income stream. When the income start date arrives, payments begin and continue per your contract — often for life.

    Why People Buy DIAs

    DIAs solve a specific problem: 'How will I make sure I have income later in retirement, especially in my 80s and beyond?' They protect against longevity risk and lock in income you can count on.

    Common Use Cases

    Pre-retirees in their 50s and 60s often use DIAs to create a future paycheck timed to start when other income sources may run thin.

    Considerations

    DIAs typically have limited liquidity — they're designed to be held until the income start date. Make sure other accounts cover near-term needs.

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