A Single Premium Immediate Annuity (SPIA) gives you reliable, predictable payments for life starting now.
If you’re at or near retirement and want to convert a portion of your savings into a steady paycheck, free from market risk, a Single Premium Immediate Annuity is one of the safest and most direct ways to create financial security.
A SPIA is a straightforward contract with an insurance company that guarantees you a stream of income payments in exchange for a single, one-time lump-sum payment.
Unlike other retirement accounts where you must actively manage withdrawals and market risk, a SPIA:
A Single Premium Immediate Annuity is an excellent fit if you identify with one or more of these goals:
SPIA (Single Premium Immediate Annuity)
Retirees who need immediate, guaranteed income
N0
401(k) or IRA
Withdrawals
Those who want flexibility
Fixed Indexed Annuity (FIA)
Those who want potential growth & income
Stocks & Dividends
Investors comfortable with market swings
SPIA (Single Premium
Immediate Annuity)
Retirees who need
immediate, guaranteed income
N0
401(k) or IRA
Withdrawals
yes
Fixed Indexed Annuity
(FIA)
Stocks & Dividends
The process of setting up a Single Premium Immediate Annuity is simple and can be broken down into three steps:
Guaranteed for as long as you live.
Fixed for a set number of years.
Guaranteed for as long as you live.
You'll make a single, lump-sum payment. This can be done using funds from savings or by rolling over money from a 401(k), IRA, or other qualified retirement plan. Using pre-tax funds from an IRA is a common funding method, and the tax implications are explained in detail by the IRS in Publication 575.
Your payments will begin almost immediately (typically within one month to one year, depending on the contract) and will continue for the duration of the payout structure you selected.
Still have questions? Here are the answers to the most common questions we receive:
Your payments start within 30 days of funding your SPIA, depending on the contract start date.
That depends on the payout structure you choose:
If you want guaranteed lifetime income and don’t want to worryabout w ithdrawals, a SPIA is one of the safest ways to create a predictable paycheck. Learn more here.
The primary difference between an immediate and a deferred annuity is the timing of the income payments.
An Immediate Annuity (like a SPIA) is designed to create an income stream that starts almost right away, typically within one year of paying your premium. You use it to turn a lump sum into a reliable paycheck now.
Think of it this way: an immediate annuity turns on the faucet for income today, while a deferred annuity first fills the reservoir to be used down the road.
For a detailed comparison of how these powerful tools can fit into different retirement strategies, you can read our full article on the differences between immediate and deferred annuities here.
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