Deferred income annuity (DIA) is a contract in which a client makes one or more premium payments now in exchange for a guaranteed income stream that begins at a future date, often several years later. Unlike immediate annuities, DIAs feature a deferral period during which no income is paid, allowing the insurer to credit internal growth and price higher future payouts. Income may be life-only or include period-certain or joint-life guarantees. DIAs can act as longevity insurance, covering the risk of outliving other retirement assets.

Advisors use deferred income annuities to create guaranteed income starting at a target retirement age or later-life age such as 80 or 85. They model how DIAs complement Social Security, pensions, and systematic withdrawals from investment accounts. Suitability reviews emphasize liquidity tradeoffs, as DIA premiums are typically illiquid once paid. Advisors compare payout options, inflation features, and insurer strength. Understanding deferred income annuities helps advisors design retirement income floors that hedge longevity risk in a simple, predictable way.