How do deferred annuities work?

Deferred annuities have an accumulation phase where you can add funds to your annuity account. The interest is deferred until the end of the accumulation phase. The second part of the deferred annuity is the payout phase where you can receive withdrawals. There are different types of deferred annuities:

What is a deferred annuity calculator?

The deferred annuity calculator (also the deferred income annuity calculator or deferred life annuity calculator) is a handy tool to answer three important questions which may arise when you are thinking about investing in a deferred annuity: How much money will I have when I retire? How much money can I withdraw? How long will my annuity last?

What are the different types of deferred annuities?

There are different types of deferred annuities: A fixed deferred annuity works similarly to a certificate of deposit (CD). Instead of having to claim the interest gains on your tax return each year, though, the interest is deferred until the payout phase. When you buy a variable deferred annuity, your funds are put into an investment account.