A deferred income annuity (“DIA,” and also sometimes referred to as a longevity annuity), is a contract between you and an insurance company. You give a lump-sum payment to the insurance company in exchange for guaranteed lifetime income that begins at a future date, up to forty years later in some cases. Deferred income annuities work similarly to immediate annuities, except that the payments don’t start immediately.
Deferred income annuities can serve as a sort of pension for those investors without an employer’s defined benefit plan.
Use these resources to learn more about deferred income annuities.