One builds future income; the other pays you now. Call 1-800-MEDIGAP to pick the right timing.
What is the difference between deferred and immediate annuities?
The key difference is timing. An immediate annuity, funded with a lump sum, begins paying guaranteed income within about 30 days to 12 months; it is built to create a paycheck right away. A deferred annuity accumulates value over an accumulation phase of several years or more before you convert it to income or withdraw; it is built to grow money tax-deferred for the future. Deferred annuities come in fixed, indexed, and variable flavors, while immediate annuities focus on income. Many retirees use both: a deferred annuity for money needed later and an immediate annuity for income needed now. A 1-800-MEDIGAP specialist can map each to your timeline.
Which annuity timing fits your retirement?
Choose based on when you need the income. If you are retired or retiring soon and need guaranteed income immediately to cover essentials like housing and Medicare premiums, an immediate annuity delivers that paycheck now. If you are still several years from needing income and want tax-deferred growth in the meantime, a deferred annuity builds a larger base first, then converts to income later, often at a higher payout because you are older. Some retirees stagger purchases to balance current income with future growth. The right mix depends on your age, other income, and goals. Call 1-800-MEDIGAP to design the timing that fits you.