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Deferred Income Annuities

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Deferred Income Annuities

Enjoy guaranteed income for the rest of your life, starting on a future date you select.

If you’re looking for a future source of guaranteed income that will last the rest of your life, a deferred income annuity may be right for you. A deferred income annuity allows you to purchase a guaranteed1 monthly paycheck beginning at a future date of your choice (generally, 13 months to 40 years from the initial purchase).

Deferred income annuities are designed to help cover your essential living expenses, as defined by you, in retirement. Generally, the longer you defer taking income, the greater your income payments will be. This income stream continues for the rest of your life, and—if you’re married and you choose a joint life option—for the rest of your spouse’s life.

Also, if you’re using qualified assets, a deferred income annuity may be purchased as a Qualified Longevity Annuity Contract (QLAC), ultimately providing you with potential tax benefits. Generally, with qualified assets, you must begin required minimum distributions (RMDs) by April 1 following the year you reach age 70½. However, RMDs for money used to purchase a QLAC can be delayed past age 70½ and up to age 85.

Request assistance from a Schwab Annuity Specialist by calling 888-311-4889.

Compare Schwab’s deferred income annuities:

  • New York Life Guaranteed Future Income Annuity II

  • Pacific Life Pacific Secure Income℠

Compare Schwab’s deferred income annuities
Issuer
New York Life Guaranteed Future Income Annuity II New York Life Insurance and Annuity Corporation
Pacific Life Pacific Secure Income Pacific Life Insurance Company and, in New York, issued by Pacific Life & Annuity Company
Financial Strength—A.M. Best2
New York Life Insurance and Annuity Corporation A++
Pacific Life Insurance Company and, in New York, issued by Pacific Life & Annuity Company A+
Issue Ages
New York Life Guaranteed Future Income Annuity II
  • Non-qualified: 0–80, owner(s)/annuitant(s)
  • Qualified: 18–68½, owner/annuitant; joint annuitant can be 18–80 and must be a spouse3
  • Roth IRA: 20–80 (Owner/annuitant(s) with a Roth IRA in place for at least five calendar years before the year in which income payments start. Joint annuitants must be spouses. Policy owner must be at least 59½ when income begins, not at purchase. Joint annuitants must independently satisfy both the 5-year holding period and age 59½ income start date requirements.)
  • Qualified Longevity Annuity Contract (QLAC): 31–80, owner/annuitant(s)
Pacific Life Pacific Secure Income4
  • Non-qualified: 22–85
  • Traditional IRA: 22–68
  • Roth IRA: 22–85
  • Qualified Longevity Annuity Contract (QLAC): 22–82
Minimum Initial Purchase
New York Life Guaranteed Future Income Annuity II $5,000
Pacific Life Pacific Secure Income $15,000
Maximum Purchase
New York Life Guaranteed Future Income Annuity II $1,000,0005
Pacific Life Pacific Secure Income $1,000,0006
SeeHide more deferred income annuities comparisons

Ready to get started?

Request assistance from a Schwab Annuity Specialist by calling 888-311-4889.

Deferred income annuity frequently asked questions

What are deferred income annuities?

Deferred income annuities create a guaranteed1 monthly paycheck for life or for a specific period of time beginning at a future date that you choose. Generally, the longer you wait, the more monthly income you will collect. Deferred income annuities may be purchased with one or multiple purchase payments and, for an additional cost, may also offer a cost-of-living adjustment that can increase your income to help address rising costs.

When might deferred income annuities be a good option for your situation?

A deferred income annuity can be a good option for you if you’re concerned about outliving your retirement assets and want a guaranteed monthly paycheck starting at a future date. A deferred income annuity’s guaranteed1 income starts at a certain age that you choose and may provide you with the comfort of knowing that you have guaranteed income to cover essential expenses in retirement no matter how long you live.

What other factors should I be aware of when considering a deferred income annuity?

The purchase of a deferred income annuity is irrevocable, meaning you generally cannot surrender this type of annuity in exchange for a contract value. Payments from a deferred income annuity are subject to ordinary income tax, but for non-qualified policies that benefit from an exclusion ratio, a portion of your payments may not be subject to further taxation.

Deferred income annuities can have an optional cost-of-living adjustment—where income payments for the same premium amount will initially be smaller than policies without this feature but will increase each year at the percent chosen—or optional death benefits (a deduction from your premium that pays for the guarantees that the optional benefits provide).

A Schwab Financial Consultant can help you determine which annuity might fit your retirement strategy.

Brokerage and insurance products: Are not deposits • Are not FDIC-insured • Are not insured by any federal government agency • Are not guaranteed by the bank or any affiliate of the bank • May lose value