Immediate Annuities
Make one lump-sum contribution that will get converted into an ongoing guaranteed stream of retirement income for a specified period of time, or for the rest of your life.
An immediate annuity is an insurance contract funded by a lump sum payment, like money from a savings account, a 401(k) or an individual retirement account (IRA). You decide on the frequency and duration of your payouts, and your initial withdrawal can start as soon as 30 days after purchase and must be taken within the first year.
Immediate annuities may be available infixed or variable formats, so you can choose between a guaranteed stream of retirement income or the potential for market-driven returns.
Immediate annuities may be available in

Immediate retirement income
Immediate annuity payments may start as early as one month after your annuity is issued or can be delayed up to a year.
Consistent retirement income
Consistent payouts mean you are less likely to outlive your retirement savings.
Easy account management
Once you purchase an immediate annuity, there are no additional steps and nothing to monitor.
Tax savings
Immediate annuity earnings are tax-deferred until you start to receive income payments. Then, only the payments you receive are subjected to income tax. But like many people, you might expect to be in a lower tax bracket during retirement, so you could potentially pay at a lower rate.
Immediate annuity payments may start as early as one month after your annuity is issued or can be delayed up to a year.
Consistent retirement income
Consistent payouts mean you are less likely to outlive your retirement savings.
Easy account management
Once you purchase an immediate annuity, there are no additional steps and nothing to monitor.
Tax savings
Immediate annuity earnings are tax-deferred until you start to receive income payments. Then, only the payments you receive are subjected to income tax. But like many people, you might expect to be in a lower tax bracket during retirement, so you could potentially pay at a lower rate.
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Immediate annuity FAQs
Immediate annuities offer reliable retirement income payments that start within a year of purchase.
How does an immediate annuity work?
Immediate annuities provide a retirement income stream that starts right away - typically within a year of purchase. You usually invest a one-time amount (a lump sum). In about a month’s time, you can begin receiving payouts.
What are single premium immediate annuities? (SPIA)
A single premium immediate annuity is a financial contract between you and an insurance company. You agree to pay the insurance company a lump sum of money up-front (the single premium), and the insurance company agrees to pay you an immediate stream of income. Payments may continue for the rest of your life or for a specified period of time, depending on the payment option you choose.
When should you consider an immediate annuity?
You may want to consider an immediate annuity if you fall into one of these scenarios:
- You're entering retirement soon and need a secure way to generate income when retired. Payments begin right away, and it’s one way of turning savings into income for the rest of your life.
- You're looking for a secure way to generate income in retirement.
What’s the difference between a fixed immediate annuity and a variable immediate annuity?
In exchange for your lump-sum payment for a fixed immediate annuity, your provider agrees to pay you a consistent, set income for life or a specified term. The fixed interest rate removes any risk associated with market ups and downs. It allows you to receive a consistent income stream through retirement.
Variable immediate annuities are held in subaccounts and are dependent on market risk and performance. You choose to invest in subaccounts tied to assets like stocks, bonds, and money market funds. If the investments do well, your payout increases. But on the same note, if the investments perform poorly, your payments may decrease, like regular investment accounts. An immediate variable annuity may be a great addition to your retirement income plan if you've already maxed out your Roth IRA or 401(k).
Thrivent does not currently offer variable immediate annuities.
Variable immediate annuities are held in subaccounts and are dependent on market risk and performance. You choose to invest in subaccounts tied to assets like stocks, bonds, and money market funds. If the investments do well, your payout increases. But on the same note, if the investments perform poorly, your payments may decrease, like regular investment accounts. An immediate variable annuity may be a great addition to your retirement income plan if you've already maxed out your Roth IRA or 401(k).
Thrivent does not currently offer variable immediate annuities.
What are the risks of an immediate annuity?
While immediate annuities have several advantages, they’re not suitable for everyone. These types of annuities are typically not designed for people looking for increased wealth or capital appreciation. And when you die, payments can stop, leaving nothing for your heirs.
Reduces cash liquidity. When you purchase an annuity, you lose immediate access to that money. If you need it soon, it won’t be available—at least without a sizable penalty.
Less growth potential. Since you start receiving payments immediately, there is no accumulation phase and therefore less growth potential.
Smaller inheritance. Unless you have selected a specific amount of time to receive payments, when you pass away the balance of your annuity will go to the insurance company's general account. It will not go to your heirs.
Higher upfront costs. Immediate annuities are purchased with a large, upfront deposit of cash.
Reduces cash liquidity. When you purchase an annuity, you lose immediate access to that money. If you need it soon, it won’t be available—at least without a sizable penalty.
Less growth potential. Since you start receiving payments immediately, there is no accumulation phase and therefore less growth potential.
Smaller inheritance. Unless you have selected a specific amount of time to receive payments, when you pass away the balance of your annuity will go to the insurance company's general account. It will not go to your heirs.
Higher upfront costs. Immediate annuities are purchased with a large, upfront deposit of cash.
Want to learn more about your retirement options?
Our financial advisors can offer personalized guidance to help create a financial strategy that’s right for you.
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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