Deferred Income Annuities: Creating a Steady & Predictable Income Stream
Categories: Fixed Annuities, Retirement
Individuals are looking for ways to create and maintain a consistent source of income throughout their retirement years. What better way to achieve this than through deferred income annuities? For anyone nearing or in retirement and looking to create a predictable and guaranteed future income stream, utilizing a product like deferred income annuities can help attain the desired income stability.
What is a deferred income annuity? LifeHealthPro defines a deferred income annuity, or DIA, as a newer type of annuity that is essentially the cross between a single premium immediate annuity and a single premium deferred annuity.
In a piece by Emily Holbrook, she explains how DIAs, “allow buyers to convert a lump sum into a pension-like series of payouts for life.” In general, with deferred income annuities, individuals have the opportunity to turn a portion of their existing savings into a consistent stream of revenue over a course of many years, beginning at 13 months and up to 40 years into the future. This type of annuity is typically for someone looking for a predictable, steady income stream that starts at a predetermined future date and is guaranteed throughout retirement.
The popularity of the deferred income annuity couldn’t have come at a better time. Further in the LifeHealthPro article we see the positive aspects of these long-term annuities discussed by Dave Simbro, senior vice president of life and annuity at Northwestern Mutual. He states, “Longevity annuities were a product that academics loved, but no one really bought. Addressing DIA needs of a younger market also created the opportunity for more innovative product design.” Thus, we welcomed the deferred income annuity.
If this product sounds like something you are interested in exploring further, feel free to browse the AnnuityAdvantage web site or give us a call at 1-800-239-0356.
CLICK HERE for the complete article on “Annuity Industry Innovations” from LifeHealthPro.