---
title: "What Is Deferred Annuity? Definition | Epic Life Glossary"
description: "A deferred annuity is an annuity contract that delays payments until a future date chosen by the owner. Until then, the money can grow during an..."
url: https://epicline.preview.multisites.ai/glossary/deferred-annuity
publisher: Epic Life Group
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Annuity terms

# Deferred Annuity

A deferred annuity is an annuity contract that delays payments until a future date chosen by the owner. Until then, the money can grow during an accumulation phase, tax deferred.

## Why it matters

Deferred annuities are used to build savings for retirement. They can be fixed, indexed, or variable. During the accumulation phase, the owner can add money, depending on the contract. Later, the owner can take lump sums, take withdrawals, or annuitize for income. Early withdrawals often face surrender charges, and taxes and penalties may apply before age 59 and a half. Rules, fees, and free withdrawal rights vary by carrier and contract.

Source: [investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/deferred-annuity)

[Read next, for familiesAnnuities explained: fixed, fixed-index, MYGA, income riders and surrender charges](https://epicline.preview.multisites.ai/annuities)

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