Deferred Annuities Vs. SPIAs

Shawn Plummer

CEO, The Annuity Expert

What Are Deferred Annuities?

Deferred Annuities are financial products that resemble personal pension plans. You invest money now and decide when to start receiving payments.

They offer several advantages:

  1. Flexibility in Control: You have more control over your funds.
  2. Higher Payouts: Potential for higher returns compared to immediate annuities.
  3. Interest Earning: The ability to accumulate interest over time.

How to Choose a Deferred Annuity?

  • Select the Right Plan: Consider plans that align with your financial goals.
  • Add an Income Rider: Income riders, also known as Guaranteed Lifetime Withdrawal Benefits, can provide additional financial security.

What is a SPIA?

A Single Premium Immediate Annuity (SPIA) is a financial product where you pay a lump sum in exchange for immediate regular payments.

However, it has limitations:

  • Less Flexibility: Once you choose a SPIA, your control over the funds is significantly reduced.
  • Fixed Payout: The payout is determined at the start and does not change.

Why Not Choose a Deferred Income Annuity (DIA)?

  • Similar to SPIA: A Deferred Income Annuity is much like a SPIA, but the payments start later.
  • Loss of Control: Like SPIAs, DIAs also limit your control over the assets.


When choosing between Deferred Annuities and SPIAs, consider the flexibility, control, and potential for higher payouts offered by Deferred Annuities. SPIAs and DIAs, while offering immediate or later income, significantly reduce your control over your assets. For many, maintaining control and flexibility is key to a sound financial plan.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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