When You Can Start Getting Money From Your Annuity

Last updated: February 1, 2016

It Depends Whether the Annuity Is Immediate or Deferred

Receiving payments from your annuity depends on whether you’ve chosen an immediate annuity or a deferred annuity.

Immediate annuities begin paying within one year of premium payment, though most actually begin paying within one or two months of receiving a premium payment.

  • Because of this, immediate annuities must be purchased using one large lump sum single premium.
  • You cannot purchase an immediate annuity with multiple premiums.

Deferred annuities delay payment until a later date specified in your annuity contract (for example, 10 or 20 years in the future).

  • Deferred annuities can be purchased with either a single premium payment or multiple premium payments.