A Deferred Income Annuity (DIA) allows you to structure future income, ultimately reducing uncertainty in retirement.
No retiree should have to worry about outliving their savings or being forced to take withdrawals too soon. For this reason, a DIA lets you lock in future payments, structured precisely according to your needs.
A Deferred Income Annuity (DIA) is a tax-deferred annuity that provides future income payments beginning on a date you choose.
Essentially, it is a contract with an insurance company that allows you to lock in a structured future income stream
All while reducing your exposure to stock market fluctuations.
You can choose when your income starts (e.g., 5, 10, or 20 years later).
Customize your payout options: lifetime income, joint income, or period certain
A Deferred Income Annuity may be right for you under several circumstances. For example, it’s a strong fit if:
A primary goal of yours is to create a reliable, predictable income stream that begins on a future date you choose.
Pre-retirees, particularly those in their 50s and 60s, can use a DIA to secure guaranteed payouts for their later years.
Many people prefer a structured payout schedule to prevent the temptation of overspending in early retirement.
This financial tool can also be used to help maximize Social Security benefits by creating an income bridge that allows you to delay filing.
DIA (Deferred Income Annuity
Structured, future income security
Structured, future income security Locked-in future retirement paycheck
NO DIRECT
MARKET RISK
SPIA (Single Premium Immediate Annuity)
Retirees who need income now
Payments start within 30 days
NO DIRECT
MARKET RISK
401(k) or IRA Withdrawals
Those who want flexibility
Access to funds but must manage withdrawals
YES
Fixed Indexed Annuity
(FIA)
Those who want growth & income
Gains linked to the market, but no direct losses
NO DIRECT
MARKET RISK
Pick a future date when you want payments to begin—typically 5 to 20 years from now.
Use savings, a 401(k) rollover,
IRA, or lump sum to fund your
annuity.
Payments start at your chosen
date and continue based on the
payout option you select.
Inflation risk – Payments may lose purchasing power over time unless an inflation-adjusted payout option is selected.
For non-qualified annuities, the portion of your payment that is considered gains is taxed as ordinary income.
For qualified annuities (funded with pre-tax dollars like an IRA), the entire payment is typically taxable.
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