Short answer
You pay now and income starts at a future date you choose.
The SEC says a deferred annuity lets you pay now and allow the money to grow before income begins. A deferred income annuity, sometimes called a longevity annuity, sets that income to start at a future date you choose, often later in retirement. Because the start is delayed, a given amount can buy more future income than an immediate annuity would today. It tends to suit someone who wants to lock in income for their later years now.
Start here
What you actually came to find out
Plain answers first. Sources stay below for checking details.
When does income start?
At a future date you choose, often later in retirement.
Why wait?
A delayed start can buy more future income for the same amount.
What is it also called?
A longevity annuity, because it covers your later years.
Who does it suit?
Someone locking in income for later retirement now.
Start
Future date
The SEC says a deferred annuity lets income begin later, after a growth period.
Source trail: SEC
Why
More later income
Delaying the start can buy more future income per dollar.
Source trail: SEC
Other name
Longevity annuity
It is often called a longevity annuity because it covers later years.
Source trail: SEC
IRA version
QLAC
Inside an IRA, the IRS version is a QLAC with its own rules.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
The plain answer is that this is income for later: you trade a lump sum today for a larger income stream that begins on a date you pick.
Neutral landscape
The shape of the question
The SEC is the main source because it defines the deferred annuity and its delayed-income design.
Source trail: SEC
The reason to delay is more future income, since a later start buys more per dollar.
Source trail: SEC
The longevity-annuity label reflects its job, which is covering later retirement years.
Source trail: SEC
Inside an IRA, the IRS version is the QLAC, which has its own premium and age rules.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
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 SECSource 02
IRS
QLAC Rules (Form 1098-Q Instructions)
The IRS instructions for Form 1098-Q set the rules for Qualifying Longevity Annuity Contracts, including the premium limit, the repeal of the 25 percent limit, and the latest start age.
Source framing
The IRS says QLAC premiums are capped at a flat dollar limit (210,000 dollars for 2025 and 2026), the 25 percent limit was repealed, income must begin by age 85, and the QLAC value is excluded from the balance used to figure required minimum distributions.
Strongest for: the official QLAC premium limit, start age, and RMD exclusion
Read at IRSPlain-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 want income now or later?
Why it matters: A deferred income annuity is the later option.
In real life: This fork sets the start date.
What to look at: What to look at: immediate versus deferred income.
Is the money in an IRA?
Why it matters: IRA money uses the QLAC version with IRS rules.
In real life: This fork changes the rules that apply.
What to look at: What to look at: the QLAC page.
How long until you want income?
Why it matters: A longer wait buys more future income per dollar.
In real life: This fork shapes the tradeoff.
What to look at: What to look at: the start date and payout.
Common questions
Quick answers
Short, plain answers for the questions people usually have next. The source trail stays available below.
What is a deferred income annuity?+
The SEC says a deferred annuity lets you pay now and start income at a future date, after a period of growth. A deferred income annuity sets that future start, often later in retirement.
Why would I delay the income?+
Because a later start can buy more future income for the same amount, which is useful for covering your later years.
Is this the same as a longevity annuity?+
Yes. Deferred income annuities are often called longevity annuities because they are used to cover later retirement years.
What if the money is in my IRA?+
The IRA version is a QLAC, which has its own IRS premium limit, start-age rule, and an exclusion from your RMD balance.
Who does it suit?+
It tends to suit someone who wants to lock in income for later retirement now, especially to guard against running low at older ages.
How this page is curated
This page uses the SEC investor education site and the IRS QLAC rules. 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.
IRS. QLAC Rules (Form 1098-Q Instructions)
https://www.irs.gov/instructions/i1098qSEC. 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.