Deferred Annuity Calculator

About this calculator

A deferred annuity is an insurance contract with two distinct phases: an accumulation phase, during which your premium grows tax-deferred (either at a fixed rate or tied to an index, depending on the product), and a later payout (annuitization) phase, during which the accumulated value is converted into a stream of regular payments — often for life.

Retirement planners use deferred annuities, including deferred income annuities (DIAs) and qualified longevity annuity contracts (QLACs), to convert a lump sum into guaranteed future income while deferring both taxes and the start of payments to a later, chosen date — commonly used to insure against outliving other retirement savings, since payouts can be structured to begin at an advanced age like 80 or 85.

This calculator projects how much your deferred annuity grows during the accumulation period based on your contribution, growth rate, and years until payout begins, then estimates the resulting annual and monthly payment once annuitization starts.