deferred annuity investment & finance definition
An
investment whose earnings accumulate tax-deferred and that, at a specific point
in the future, begins making a series of regular payments. These are sold by
insurance companies and often used to plan for retirement.
See deferred annuity in Wall Street Words
An annuity that is not scheduled to begin payments until a given date. These annuities may be purchased with a single payment or, as is more often the case, with a series of periodic payments. Deferred annuities are most commonly purchased by individuals who want to make periodic payments during their working lives in order to receive monthly or annual income payments from the annuities during their retirement. Compare
immediate annuity. See also
periodic purchase deferred contract,
single-premium deferred annuity.
Learn more about deferred annuity
