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DEFERRED INCOME ANNUITIES Guaranteed income later with deferred income annuities
If you can wait at least a few years before receiving retirement income, a deferred income annuity can help you make the most of your savings. Your agent will help you set a future start date for your payouts that can provide higher guaranteed income.
What deferred income annuities offer
Whenever you’re looking for your retirement income stream to start, we’ll help you set up your annuity to support you for the rest of your life (a unique benefit of annuities).
Income for life
When your annuity starts paying you, you’ll have a guaranteed, reliable source of income for the rest of your life or until the guaranteed period ends1
Flexible schedule
You decide when to start receiving income in the future and how often you’ll receive it
Higher payouts
Rather than dipping into your savings, you can actually receive higher guaranteed income by delaying your start date
Three types of annuities offering deferred income
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Guaranteed Future Income Annuity²
Lifetime income that won’t fluctuate with the financial markets, plus a variety of payout options
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Future Mutual Income Annuity³
Stable income for life, but payouts could increase over time through potential dividends4
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Clear Income Advantage Fixed Annuity⁵
Designed for people who are looking for protected lifetime income with some liquidity (ability to withdraw cash)
Common questions about deferred income annuities
A deferred income annuity is a type of policy that converts your savings into a future income stream during retirement. It’s a good option if you’re at least a few years away from retirement. When you’re ready, it starts to provide guaranteed income payments, like a pension that supports you for the rest of your life.
A deferred income annuity gives you a lot of flexibility, and your agent will help you make a number of decisions: how much to put into the annuity and when, how often you’d like to receive guaranteed payouts, and when you’d like your income to start. In some cases, there’s also the potential for dividends. Then you’ll start receiving regular income payments to support you for the rest of your life. If your needs change at any point, you can make adjustments to your annuity.
You can start receiving income payments as early as two years after the policy starts. The longer you can wait, the higher your guaranteed income may be. Connect with an agent for personalized quotes and guidance.
If you’ve already paid taxes on the money you put into the annuity, you’ll only be taxed on additional earnings that the annuity makes. Those earnings are tax-deferred, meaning that you only pay taxes when you receive an annuity payment. (Part of each annuity payment is treated as a tax-free recovery of your premium and the remainder of each payment is treated as taxable earnings.) If you use pre-tax dollars, however, you’ll pay income tax on the entirety of each payout. Your agent can give you personalized quotes and answer any other questions you may have.
A deferred income annuity is considered low risk. You’re guaranteed to receive regular payments for life and not lose any of the money you put in.
If you need retirement income sooner, there’s another option
Learn more about retirement planning
1All guarantees are dependent upon the claims-paying ability of the issuers, New York Life Insurance Company (NYLIC) and New York Life Insurance and Annuity Corporation (NYLIAC) (A Delaware Corporation), a wholly owned subsidiary of NYLIC. All contract and rider guarantees, including options benefits and annuity payout rates, are backed by the claims-paying ability of the respective insurance company.
2New York Life Guaranteed Future Income Annuity is issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Corporation, 51 Madison Avenue, New York, NY 10010. The policy form number for the New York Life Guaranteed Future Income Annuity is ICC11-P100 (it may be 211-P100 and state variations may apply).
3New York Life Future Mutual Income Annuities are issued by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. The policy form number for the New York Life Future Mutual Income Annuity is 215-P200. State variations may apply.
4Dividends are not guaranteed. Dividends, if declared, are payable beginning on the first policy anniversary (i.e., 12 months after issue).
5New York Life Clear Income Advantage Fixed Annuities are issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Corporation, 51 Madison Avenue, New York, NY 10010. In most jurisdictions, the policy form number for the New York Life Clear Income Advantage–FP Series is ICC22D-P01; in some states it may be NC22D-P01, and state variations may apply. In most jurisdictions, the rider form number for the Guaranteed Lifetime Withdrawal Benefit Rider is ICC22D-R01; in some states it may be NC22D-R01, and state variations may apply.
All withdrawals are subject to regular income taxes and are taxed “gains first” or last in first out. Once your Accumulation Value is reduced to $0, your lifetime income payments are fully taxable. Withdrawals made prior to income starting or withdrawals greater than your Guaranteed Lifetime Withdrawal Amount will reduce your guaranteed income payments. Withdrawals made prior to age 59½ may be subject to a 10% IRS penalty. Surrender charges and Market Value Adjustments (MVA) may also apply.
An MVA only applies when the policy owner surrenders or makes a withdrawal from the contract that is greater than the surrender-charge-free withdrawal amount during the surrender-charge period and will add or deduct an amount from your annuity or from the withdrawal amount you receive based on a formula and the prevailing interest rate environment. Please request a Product Fact Sheet from your financial professional for additional important information.