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What is the difference between a deferred annuity and an immediate annuity?

April 26, 2017Annuity Deferred immediate

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What is the difference between a deferred annuity and an immediate annuity?

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The key difference is that a deferred annuity is a long-term vehicle, designed to accumulate assets over time. When you are ready to receive income, usually at retirement, you can convert your accumulated savings into a steady stream of income for the period of time that you choose.