Deferred income annuities

Save money now, guarantee retirement income later.

No matter where you are in your retirement saving journey, you’ve probably wondered: When the time comes, will my money last as long as I need it to? A deferred income annuity can help ensure you have what you need, by providing predictable, guaranteed retirement income you can’t outlive.

What is a deferred income annuity?

Think of it as a pension plan you purchase for yourself. A deferred income annuity allows you to put aside money now that will provide you with a steady income stream later. You pay a lump sum or ongoing payments in exchange for guaranteed future income. Once your money is invested, you typically can’t access it until retirement.

The benefits of a deferred income annuity

You’re in control of your annuity. You choose a future date to begin receiving income—anywhere from 13 months to 30 years. And you choose how often you’ll receive payments—monthly, quarterly, semiannually, or annually. A deferred income annuity also lets you:

  • Supplement your future retirement income, by providing guaranteed income in addition to Social Security or a pension plan.
  • Save more for retirement if you’ve maxed out your 401(k) or IRA contributions (annuities don’t have annual contribution limits).
  • Lower taxable income by receiving your income over time, which lets you spread your tax obligations on that income.
  • Avoid market risk, because deferred income annuities aren’t invested in the market.

Many deferred income annuities also offer optional benefits, called riders, which can help your income payments keep pace with inflation.

Income payments on your terms.

You can receive income for life or for a period of time you specify—how your annuity is paid out is entirely up to you.

Ensure your premium is returned to beneficiaries if something happens to you.

By adding period-certain or refund terms to your lifetime payout, you can extend payments to your beneficiary for a set timeframe after you die, or refund all remaining premiums to your beneficiary at once.

Or choose from fixed-period or fixed-amount payouts.

Decide on a span of time for which you’d like to receive payments, or specify the amount you’d like each check to be.

Safeguard the security of a partner or family member. 

Provide payments for the lives of you and your partner with a joint annuity.

Already have an annuity with Principal®?

Access your account information online.

We're here to help

Visit our annuities help section, or call us at 800-852-4450.

Annuity products and services are offered through Principal Life Insurance Company, a member company of Principal, Des Moines, Iowa 50392.

Guarantees are based on the claims paying ability of Principal Life Insurance Company.

Withdrawals prior to age 59 ½ may be subject to a 10% IRS penalty tax.