LIVE RATES
SPIA · age 65 · $100k → $625/moMYGA 5-yr 6.30%MYGA 3-yr 6.00%Fixed-index cap 9.25%10-yr Treasury 4.21%
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ANNUITY TYPE · DIA — Deferred Income Annuity / 'longevity annuity'

Deferred Income Annuity

Buy a future paycheck today: pay now, lock the income, and turn it on years later — often at a much higher rate.

WHAT IT IS

Like an immediate annuity, but income starts on a future date you choose (often 5–20+ years out). Because the insurer holds your money longer and you may not live to collect, the eventual payout per dollar is markedly higher.

HOW IT WORKS
You pay a premium (lump sum or a series) today.01
You pick a future start date for income.02
The payout is locked in at purchase, based on today's rates and your deferral length.03
Income begins on the chosen date and continues for life.04
Key facts
Income startsFuture date (5–20+ yr)
Payout vs SPIAHigher per dollar
LiquidityVery low
Rate lockedAt purchase
See the payout calculator →
The catch

You get nothing during the deferral, and if you die before (or shortly after) income starts, you may collect little or nothing without a death-benefit rider — which lowers the payout. It is a bet on your own longevity.

Best for
Not for
THE MECHANICS, ON THE RECORD
Payout / return

Higher income per dollar than a SPIA because of the deferral. Deferring from 60 to 70 can raise the eventual monthly income well over 75% — but you collect nothing in between.

Fees

Like a SPIA, no explicit fee; costs are embedded in the payout rate.

Liquidity

Very low. Most DIAs cannot be surrendered for cash; some offer limited liquidity riders that reduce the payout.

Tax treatment

Same exclusion-ratio treatment as a SPIA for non-qualified money; fully taxable for qualified money. A DIA inside an IRA that defers required distributions is a QLAC (see separate entry).

RELATED TYPES
Immediate Annuity
Hand over a lump sum, start collecting a guaranteed paycheck within ab…
QLAC
A deferred income annuity inside your IRA/401(k) that also pushes back…
Fixed Annuity (MYGA)
A tax-deferred CD-style contract: a guaranteed interest rate for a set…

Educational explainer, not individualized financial advice. Figures are typical industry ranges as of 2026 and vary by insurer, product, and state. Sources: SEC/FINRA investor bulletins, IRS Pub 575/939, NAIC model regulations, SECURE 2.0 Act. We’re independent and don’t sell annuities.