Compare the Best Deferred Income Annuities Rates for 2026
Compare the best deferred income annuities, explore current rates, and see which options deliver the strongest guaranteed retirement income.
Compare the Best Deferred Income Annuity Rates
Before comparing deferred income annuities, note that these are primarily fixed index annuities, which offer the potential for higher credited interest based on market index performance.
Some deferred annuities also feature principal protection from market losses, meaning no matter the market fluctuations, your investment will not suffer.
These products are designed to help grow retirement income over time with built-in downside protection.
| Product Name | AM Best Rating | Surrender Period | Est. Fixed Rate* | Best For | ||
|---|---|---|---|---|---|---|
| Allianz | Allianz Core Income 7 | A+ | 7 | 3.60% | Risk-averse savers 45+ for retirement income | Read Review |
| Allianz 222 | 10 | 2.80% | Conservative investors 50+ for LTC & legacy | Read Review | ||
| Allianz 360 | 10 | 2.00% | Conservative savers 50+ for growing income | Read Review | ||
| American Equity | Asset Shield 5/7/10 | A- | 5, 7, 10 | 3.55% | Retirees seeking short-term stability | Read Review |
| Athene Annuity | Performance Elite | A+ | 7, 10, 15 | 4.35% | Long-term accumulators seeking growth | Read Review |
| BCA 2.0 | 10 | - | Growth seekers with moderate liquidity needs | Read Review | ||
| Americo | Platinum Assure 5 | A | 5 | 5.15% | Conservative savers wanting CD alternative | Read Review |
| American Equity Investment | Asset Shield 5/7/10 | A | 5, 7, 10 | 3.80% | Long-term savers prioritizing protection | Read Review |
| Corebridge | Power Index 5 | A | 5 | - | Retirees seeking inflation-linked growth | Read Review |
| F&G Annuities & Life | Accumulator Plus | A | 7, 10 | 3.75% | Risk-averse accumulators with health flexibility | Read Review |
| Flex Accumulator | 10 | 1.50% | Legacy planners seeking diversified growth | Read Review | ||
| Global Atlantic Financial Group | Choice Accumulation II | A | 5, 7, 10 | 3.00% | Legacy-focused accumulators seeking customization | Read Review |
| Silac | Silac Teton 7/10/14 | B | 7, 10, 14 | 4.00% | Long-term accumulators with health needs | Read Review |
*Estimated fixed interest rates may change over time
Important note: Estimated interest rates and future income projections may vary based on market conditions, insurer terms, age, and state of residence.
Who Are Deferred Annuities for?
Deferred income annuities are designed for people who want to grow retirement income now and receive guaranteed income later in life. This type of annuity is well-suited for:
- Individuals planning ahead for retirement who don’t need income immediately
- Savers looking to lock in future guaranteed income while benefiting from tax-deferred growth
- Those seeking protection from market downturns while still earning potential interest (common with fixed indexed annuities)
- Retirees who want higher lifetime payouts by delaying income start dates
By investing in a deferred annuity, you trade time for a higher guaranteed series of payments later, which makes it a suitable long-term investment for retirement security.
Pros and Cons of Deferred Annuities
Even the best deferred income annuities are not perfect. With the long-term, tax-deferred growth, you face liquidity limits and potential costs. Understanding both sides will help you determine whether this annuity type fits your needs:
| Pros | Cons |
|---|---|
| ➕ Tax-deferred growth during accumulation ➕ Protection against principal loss (most fixed/indexed types) ➕ Option for lifetime guaranteed income ➕ Built-in death benefits for heirs ➕ No IRS contribution limits | ➖ Limited access to funds early on (surrender charges may apply) ➖ Penalties for withdrawals before age 59½ ➖ Earnings taxed as ordinary income ➖ Possible fees for riders and contract features |
How to Buy a Deferred Annuity
Once you’re ready to secure a future guaranteed income, purchasing a deferred annuity is a straightforward process:
- Choose Your Investment Amount & Income Start Date
Most deferred income annuities are long-term investments with surrender periods of 5, 10, or even 20 years. Hence, it’s important to decide how much you want to invest and when you would like your income to begin.
The longer you defer payments, and the more you contribute, the higher your future guaranteed income can be. This step shapes the growth period of your annuity.
- Compare Deferred Annuity Rates & Income Projections
Review multiple offers from different insurers to see which deferred income annuities provide the strongest future payouts. It’s also worth checking the insurers’ ratings to see how secure and reputable they are.
Many of these annuity products are fixed or fixed indexed, meaning they protect your principal while offering credited interest based on market index performance. Hence, it is also worth looking into available index options to ensure you lock in the best long-term value.
- Complete the Application & Required Information
Submit your application with basic personal and financial details.
Some deferred annuities may include simple health or suitability questions to confirm the product aligns with your retirement goals. Once reviewed, the insurer finalizes your contract terms and projected income.
- Let Your Annuity Grow — Then Start Receiving Income
When your chosen income start date arrives, the annuity converts into guaranteed payments, providing predictable retirement income for life or a set period, depending on your selected payout option.
Deferred vs. Immediate vs. Safe Growth: Which One to Choose?
Choosing between a deferred, immediate, or safe growth depends on your income needs, risk tolerance, and retirement goals. Each annuity is built around a different primary purpose: growing future income, generating income right away, or protecting your savings while earning steady returns.
Let’s break down how each option works:
- Deferred annuities
Deferred annuities are designed for future income planning. You invest a lump sum today and allow it to grow on a tax-deferred basis over several years, often 5 or more. When the accumulation period ends, the annuity converts into guaranteed income payments, typically resulting in higher lifetime payouts the longer you defer.
- Immediate annuities
Immediate annuities turn a lump sum into guaranteed income almost right away, usually within 30 days to one year. They’re commonly used by retirees who want predictable monthly payments and protection from market volatility.
- Safe growth annuities
Safe growth annuities focus on protecting your principal while earning steady, predictable interest. These usually include fixed and fixed indexed annuities, which may credit interest based on set rates or market indexes without direct market losses.
Explore Other Annuities for Retirement
Security Benefit Life
Strategic Growth Annuity
F&G Annuities & Life
Power Accumulator 7/10
Build Tomorrow’s Guaranteed Income, Starting Today
Deferred annuity rates, growth caps, and payout formulas vary widely by provider. A smarter comparison now can mean significantly higher retirement income later.
At Annuity Association, we analyze dozens of top insurers to help you lock in the strongest long-term value.
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FREQUENTLY ASKED QUESTIONS
What is the current average return on a deferred income annuity?
Returns vary based on interest rates, index performance (for fixed indexed annuities), contract terms, and how long income is deferred. In general, longer deferral periods result in higher future guaranteed income. Comparing deferred annuity rates across multiple insurers provides the most accurate picture.
Can I cancel a deferred annuity after purchasing it?
Deferred annuities typically include a surrender period during the first several years. You may withdraw funds during this time, but surrender charges often apply. After this period ends, access becomes more flexible depending on contract terms.
How is deferred annuity growth taxed?
Deferred annuities grow on a tax-deferred basis, meaning you don’t pay taxes on earnings until withdrawals begin. When income starts, earnings are taxed as ordinary income rather than capital gains.
What happens if I pass away before income begins?
Most deferred annuities include a death benefit that allows beneficiaries to receive the contract value or remaining balance, depending on the policy. This ensures your savings aren’t lost if income hasn’t started yet.
How can I find the best deferred annuity rates?
Rates and future income projections differ widely between companies and states. Comparing multiple top-rated insurers, rather than relying on one provider, is the most effective way to secure the strongest deferred income annuity.
Annuity Association is the leader in providing Independent Annuity recommendations for protected income, safe growth and other benefits in retirement.
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