What’s the Difference: Immediate vs. Deferred Annuities?
In the second episode of our three-part series on the basics of annuities, Rosen explains the differences between immediate and deferred annuities.
With an immediate annuity, you can convert savings into an almost instant pension if you’re about to retire. On the other hand, a deferred annuity can provide a guaranteed lifetime income sometime in the future — if you’re years or decades away from retirement.
In this episode, you’ll learn about:
- The pros and cons of both immediate and deferred annuities.
- How both types of annuities provide security in retirement — but what you may be giving up.
- Things to know before buying an annuity.
- Factors to consider when choosing the best annuity for your financial needs and goals.
- Who might be better suited for one type of these annuities over the other.