Deferred Annuities
Contribute money now and defer your payouts until later—potentially decades later—depending on how far away you are from retirement.

A deferred annuity is an insurance contract that may provide retirement income over a specified period of time in exchange for an up-front lump sum payment or premium payments over time. Depending on how far away from retirement you are, you can defer your income stream until later to give your investment time to grow.
Deferred annuities are available with fixed or variable rates of return, so you can choose between a guaranteed stream of retirement income or the potential for market-driven returns.
Deferred annuities are available with fixed or variable rates of return, so you can choose between a guaranteed stream of retirement income or the potential for market-driven returns.

Deferred annuity features
Deferred annuities are available with both fixed and variable rates of return so you can choose type one that aligns with your goals and risk tolerance.
Investment growth potential
In general, the longer you defer your annuity, the higher your payout could be. By delaying your payout, your money will have more time to compound and that could boost the payout you’ll be able to receive when you start withdrawing money.
Retirement income
A deferred annuity could help you build your retirement savings over time to provide a consistent income flow to help support your lifestyle in retirement.
Tax-deferred growth
Annuity earnings are tax deferred. That means they aren’t taxed while you’re contributing to it, and that may result in a higher account balance when you start to take income.
Deferred annuities are available with both fixed and variable rates of return so you can choose type one that aligns with your goals and risk tolerance.
Investment growth potential
In general, the longer you defer your annuity, the higher your payout could be. By delaying your payout, your money will have more time to compound and that could boost the payout you’ll be able to receive when you start withdrawing money.
Retirement income
A deferred annuity could help you build your retirement savings over time to provide a consistent income flow to help support your lifestyle in retirement.
Tax-deferred growth
Annuity earnings are tax deferred. That means they aren’t taxed while you’re contributing to it, and that may result in a higher account balance when you start to take income.
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Deferred annuity FAQs
Deferred annuities offer the opportunity for guaranteed income and growth potential.
How does a deferred annuity work?
A deferred annuity is commonly used to generate a steady stream of income in retirement. You may fund your annuity with one large lump sum payment or in smaller amounts over months or years. As the name implies, income payments are deferred to a later date, at least one year after you opened the annuity.
As long as your money stays in the annuity, you don't owe taxes on your gains. You only owe taxes when you start collecting income.
As long as your money stays in the annuity, you don't owe taxes on your gains. You only owe taxes when you start collecting income.
When should you consider a deferred annuity?
If you decide that you want an annuity, the time to buy one is generally when you’re in your late 50s or early 60s and looking forward to retiring in the next decade or so. A deferred annuity can help supply you with additional income to live comfortably in retirement. And since it can be funded in a lump sum or through a series of payments, it may help you build a more significant nest egg and generate income for the rest of your life.
What’s the difference between a fixed deferred annuity and a variable deferred annuity?
Fixed is the simplest type of deferred annuity to understand. The insurance company gives you a guaranteed fixed interest rate on your investment when you agree to the length of the guarantee period. Because fixed annuities are based on the guaranteed interest rate and your income is not impacted by market volatility, you will know exactly how much your monthly payments will be – but the contract also won't benefit from a potential upswing in the market, and it may not keep pace with inflation.
A variable deferred annuity allows you to invest your money into subaccounts, which over time could help you keep up with or even outpace inflation. However, subaccounts are dependent on market risk and performance and could lose value. For this reason, variable annuities often offer a death benefit or an optional income rider for an additional fee, which can guarantee income to your beneficiaries. A variable annuity could be a great addition to your retirement income plan if you've already maxed out your Roth IRA or 401(k) contributions.
A variable deferred annuity allows you to invest your money into subaccounts, which over time could help you keep up with or even outpace inflation. However, subaccounts are dependent on market risk and performance and could lose value. For this reason, variable annuities often offer a death benefit or an optional income rider for an additional fee, which can guarantee income to your beneficiaries. A variable annuity could be a great addition to your retirement income plan if you've already maxed out your Roth IRA or 401(k) contributions.
What are the risks of a deferred annuity?
Once you purchase your annuity, there may be hefty fees involved with withdrawing your money early. Early withdrawals (before age 59½), for example, can result in a 10% penalty paid to the IRS on the amount of the gain withdrawn, in addition to your regular income tax. Early withdrawals can carry surrender charges owed to your financial institution, as well.
If you purchase a deferred variable annuity, your annuity could lose value based on the performance of your investment options. It's essential to read your contract documents to learn what's true for your deferred annuity contract.
If you purchase a deferred variable annuity, your annuity could lose value based on the performance of your investment options. It's essential to read your contract documents to learn what's true for your deferred annuity contract.
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Investing involves risk, including the possible loss of principal. The prospectus and summary prospectuses of the variable annuity contract and underlying investment options contain information on investment objectives, risks, charges and expenses, which investors should read carefully and consider before investing. Available at Thrivent.com.
Holding an annuity inside a tax-qualified plan does not provide any additional tax benefits.
Guarantees based on the financial strength and claims-paying ability of the issuer.
Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
Holding an annuity inside a tax-qualified plan does not provide any additional tax benefits.
Guarantees based on the financial strength and claims-paying ability of the issuer.
Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
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