Deferred Annuities

Deferred annuities are financial products designed to accumulate funds over time, with growth occurring on a tax-deferred basis until withdrawals are made. During the accumulation phase, investors make either lump sum contributions or periodic payments, allowing their investment to grow based on the terms of the annuity, such as a fixed interest rate or variable investment options. Once the deferral period ends, the annuity enters the payout phase, where it provides a stream of income for a specified period or for the rest of the investor's life. Instead of a payout, the individual could also transfer the funds or move them to a new annuity. Deferred annuities are commonly used for long-term retirement planning, offering the potential for growth and a reliable income source in retirement.