Faculty Publications


Pre-Pay for Retirement with Deferred Income Annuities

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Deferred income annuities (DIA) have grown in popularity in recent years, and they are poised for further growth as the Treasury Department has simplified procedures for purchasing them in retirement accounts. They are a cousin of single-premium immediate annuities (SPIA), as both offer a guaranteed lifetime income in exchange for a premium payment. The difference is that the start date for income from a DIA is at least a year after the purchase date.