An immediate annuity or deferred income annuity (DIA) can replace a pension by providing a guaranteed lifetime income stream. The annuity provides predictable monthly income for life, similar to a pension. An independent agent can compare annuity options for pension replacement.
Key Points
- Immediate annuity: provides guaranteed lifetime income like a pension
- Deferred income annuity (DIA): starts paying income at a future date
- Lifetime income: cannot outlive the income stream
- Joint and survivor option: provides income for both spouses
- An independent agent can compare annuity options for pension replacement