Is a company: no
Is a proper noun: no
- postponed annuity
Definition of Deferred Annuity
- An annuity contract that give the annuitant the option to delay receiving income payments until he or she chooses to receive them. There are two main phases in a deferred annuity: the accumulation phase where the annuitant pays into the annuity and income phase where the annuity is paid back to the annuitant in the form of income payments. Also known as a "deferred payment annuity" or "delayed annuity."
Related Terms and Acronyms
- Joint and Survivor Annuity — Definition,
- An annuity with multiple annuitants (usually spouses) that makes payments as long as either of the annuitants are alive.
- Split-Funded Annuity — Definition,
- Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
- Annuity Contract — Definition,
- A contract that outlines each party's responsibilities as they relate to an annuity.
- Immediate Payment Annuity — Definition,
- An annuity where payments to the annuitant start immediately after the annuity has been set up.
- Inflation-Protected Annuity — Definition,
- An annuity that guarantees a return equal to or above inflation.
- Investment in the Contract — Definition,
- The principal that has been contributed to an annuity.
- Registered Retirement Savings Plan (RRSP) — Acronym, Canada, Very Important,
➥ Tax deferred investment contribution used to reduce income tax.
- A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
- Fixed Annuity — Definition,
- An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
- Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
- Accumulation Period (AP) — Acronym, Important,
- The period where an investor continues to put money into his or her investment(s).
- Tax Deferred Annuity (TDA) — Acronym, Important,
➥ More commonly known as a Tax Sheltered Annuity (TSA).
- A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
- Straight Life Annuity — Definition,
- An annuity that stops all payments upon the annuitant's death.
- Indexed Annuity — Definition,
- An annuity where investment performance is pegged to a stock index.
- Life Expectancy Method — Definition,
- A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
- Annuity — Definition,
- A financial instrument that disperses a number of payments over a set period of time.
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- Single Premium Deferred Annuity (SPDA) — Acronym,
- A deferred annuity funded with a single payment.
- Wraparound Annuity — Definition,
- An annuity that allows the annuitant to control how funds in the annuity are invested.