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Deferred Income Annuities

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

What is a deferred income annuity?

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 (DIA) allows you to use a lump sum or multiple purchases to receive a guaranteed1 "retirement paycheck". The DIA provides guaranteed income (your "retirement paycheck") beginning at a future date of your choice (generally, 13 months to 40 years from the initial purchase).

DIAs are designed to use your "retirement paycheck" to help cover your essential living expenses, as defined by you, in retirement. Generally, the longer you defer taking income, the greater your "retirement paycheck" will be. This "retirement paycheck" continues for the rest of your life, and—if you choose a joint life option—for the rest of your spouse's life, no matter how long both of you live.

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 72. However, RMDs for money used to purchase a QLAC can be delayed past age 72 and up to age 85.

All guarantees are backed by the claims-paying ability and financial strength of the issuing insurance company, not Schwab.


Questions about annuities? Contact an annuity specialist at 866-663-5241.

Compare Schwab's deferred income annuities:

  • New York Life Guaranteed Future Income Annuity II
  • Pacific Life Pacific Secure Income
  • 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—Standard & Poors2
  • New York Life Guaranteed Future Income Annuity II

    New York Life Insurance and Annuity Corporation
    • AA+
  • Pacific Life Pacific Secure Income

    Pacific Life Insurance Company and, in New York, issued by Pacific Life & Annuity Company
    • AA-
  • Issue Ages4
  • New York Life Guaranteed Future Income Annuity II

    • Non-qualified: 0–80, owner(s)/annuitant(s)
    • Qualified: 18–70, 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 Income

    • Non-qualified: 22–85
    • Traditional IRA: 22–68
    • Roth IRA: 22–85
    • Qualified Longevity Annuity Contract (QLAC): 22–82
  • Minimum Initial Purchase at Schwab
  • New York Life Guaranteed Future Income Annuity II

    $100,000
  • Pacific Life Pacific Secure Income

    $100,000
  • Maximum Purchase
  • New York Life Guaranteed Future Income Annuity II

    $1,000,0005
  • Pacific Life Pacific Secure Income

    $1,000,0006

See more deferred income annuities comparisons.

Additional Purchase
Time Before Income Begins
Income Start Date
Payout Options
Period Certain Income Options
Joint Income Continuation Options
Death Benefit Before Income Start Date
Additional Features
Maximum Qualified Longevity Annuity Contract (QLAC) Purchase

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).

Questions? We're ready to help.