Short answer
A SPIA starts income now; a DIA delays it and pays more later.
The SEC says an immediate annuity (SPIA) starts income within about a year of your payment, while a deferred annuity lets the money grow before income begins. A DIA, or deferred income annuity, sets that start at a future date you choose, so the same deposit buys a larger income later. Choose a SPIA when you want dependable income now, and a DIA when you want to lock in bigger income for later years, such as your 80s.
Start here
What you actually came to find out
Plain answers first. Sources stay below for checking details.
Which pays now?
The SPIA, within about a year of your payment.
Which pays more later?
The DIA, because the delayed start buys more income.
Do both last for life?
Yes, both can be set to pay for your whole life.
Which fits later years?
The DIA, often used to cover your 80s.
SPIA
Income now
The SEC says an immediate annuity starts income within about a year.
Source trail: SEC
DIA
Income later
A deferred income annuity starts at a future date you choose.
Source trail: SEC
Tradeoff
More later
Delaying the start buys more income per dollar.
Source trail: SEC
Both
Lifetime option
Both can be set to pay for your whole life.
Source trail: SEC
The verdict is timing: income now points to a SPIA, larger income later points to a DIA. Both can pay for life.
Neutral landscape
The shape of the question
The SEC is the main source because it defines immediate and deferred annuities by when income starts.
Source trail: SEC
The SPIA answers an income-now goal.
Source trail: SEC
The DIA answers an income-later goal and buys more income per dollar by waiting.
Source trail: SEC
Both can pay for life, so the choice is timing, not whether the income lasts.
Source trail: SEC
Curator core
What the authorities say
These sources are here for the reader who wants to check the work. The plain-English answer stays above them.
Source 01
SEC
Annuities (Investor.gov)
The SEC investor education site explains the basic kinds of annuities, including immediate and deferred annuities and annuitization.
Source framing
The SEC says an immediate annuity starts income within about a year of a single payment, while a deferred annuity lets money grow before income begins.
Strongest for: neutral definitions of immediate, deferred, and annuitized annuities
Read at SECPlain-English forks
The forks people face
Most retirement questions hide a few smaller decisions. These are the practical pieces that change the plan.
Do you need income now or later?
Why it matters: Now points to a SPIA; later points to a DIA.
In real life: This fork is the whole decision.
What to look at: What to look at: the immediate and deferred income types.
Are you guarding your later years?
Why it matters: A DIA can lock in larger income for your 80s.
In real life: This fork fits a longevity goal.
What to look at: What to look at: the deferred income annuity.
Is the money in an IRA?
Why it matters: IRA money can use a QLAC, the DIA inside an IRA.
In real life: This fork adds IRS perks.
What to look at: What to look at: the QLAC page.
Common questions
Quick answers
Short, plain answers for the questions people usually have next. The source trail stays available below.
What is the difference between a SPIA and a DIA?+
The SEC says a SPIA starts income within about a year, while a DIA delays income to a future date you choose, which buys more income per dollar.
Which pays more?+
For the same deposit, a DIA pays more once income starts, because the delay lets the money grow first.
Do both last for life?+
Yes. Both a SPIA and a DIA can be set to pay for your whole life.
Which should I choose?+
Choose a SPIA for income now and a DIA for larger income later. It comes down to when you want the income to begin.
How this page is curated
This page uses the SEC investor education site. It is neutral education, not a recommendation to buy any product.
Read the planner methodologyTrust anchor
Sources used on this page
Every source named above is listed here in one place.
SEC. Annuities (Investor.gov)
https://www.investor.gov/introduction-investing/investing-basics/investment-products/annuities
Before you act on this
This plan is educational. It is not personalized financial, tax, or insurance advice. Projections illustrate the math, they do not predict the future. Talk to your own licensed financial professional before acting on any of it.