What is an Annuity Effective Date?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is an Annuity Effective Date?

The annuity effective date is the specific date when an annuity contract becomes active and begins to accrue benefits or payments. This date is crucial because it marks the start of the period when the annuity holder or beneficiary can expect to receive payments or when certain terms of the contract, like interest accumulation, begin.

Examples of Annuity Effective Dates

  1. Immediate Annuity: If an individual purchases an immediate annuity on April 1, 2023, the annuity effective date might be April 1, 2023, with payments starting immediately.
  2. Deferred Annuity: For a deferred annuity purchased on January 1, 2023, the effective date might still be January 1, 2023, but payments might be scheduled to start five years later, on January 1, 2028.

Annuity Effective Date Scenarios

ScenarioPurchase DateEffective DatePayment Start DateNotes
Immediate AnnuityApril 1, 2023April 1, 2023April 1, 2023Payments start immediately
Deferred AnnuityJanuary 1, 2023January 1, 2023January 1, 2028Payments start after 5 years
Fixed AnnuityJune 15, 2023July 1, 2023July 1, 2023Fixed payments start on the 1st of the month
Variable AnnuitySeptember 10, 2023October 1, 2023October 1, 2028Payments vary based on investment performance, start after 5 years


Understanding the annuity effective date is essential for managing expectations regarding payment schedules and contract terms. This date marks the commencement of the annuity’s terms and conditions, influencing when payments are made and how benefits are calculated. Remember, choosing the right effective date aligns with your financial goals and retirement plans.

Contact us today for a free quote.

Effective Date Of Annuity

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Frequently Asked Questions

Is an annuity at the beginning of the year or the end of the year?

An annuity can be structured to make payments either at the beginning or the end of the year, known as an “annuity due” or “ordinary annuity,” respectively. Your specific contract will outline when payments are to be made.

Do annuities have an end date?

Some annuities, known as term-certain annuities, have a fixed end date. Lifetime annuities, however, continue payments for as long as the annuitant lives. The end date depends on your specific contract.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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

Scroll to Top