Supplement your retirement savings with a tax-deferred annuity.

A deferred income annuity provides you with a worry-free stream of income, which starts at a later date and lasts for life. The income you accumulate, by paying an affordable monthly premium, is often used to supplement Social Security and other retirement savings.

Older couple reviewing their finances at their kitchen table.

What is a deferred income annuity?

Deferred income annuities let you create a pension-like income stream that you can depend on in the future. These are particularly valuable in retirement because of the steady payouts, which can help people maintain their lifestyle after they stop working. 

The longer you defer your payouts, the more guaranteed income you generate down the road for when you’re ready to enjoy retirement.

New York Life offers two types of deferred income annuities.


Non-dividend eligible

The non-dividend-eligible version offers a higher initial guaranteed income amount.

Dividend eligible

The dividend-eligible version offers guaranteed income along with the opportunity for more income through dividends. Dividends are not guaranteed, but these policies have the potential to provide more total income over time than non-dividend-eligible deferred income annuities.

Couple discussing their finances

You should consider deferred income annuities if you’re looking for: 

  • Guaranteed income for life, starting in a few years.
  • Higher income later, because you’re able to put away money now.
  • A way to supplement your savings down the road.

Key benefits and features of a deferred income annuity.


  • Guarantees1
    Income payments are guaranteed for life. The dividend-eligible annuity provides lower initial guaranteed income compared with the non-dividend-eligible deferred income annuity.
  • Flexibility
    These annuities offer a variety of payout options to help meet specific needs, as well as the choice of how often you would like to receive payments. They also offer flexible premium payments, which allow the policy to adapt over time to meet evolving objectives. Limited liquidity features are available on the dividend-eligible version if you need to gain access to funds for emergency needs.2
  • Dividends
    Dividends, if declared, can be taken as cash, used to purchase additional income, or used for a combination of the two. Over time, this can provide more total income than a non-dividend- eligible deferred income annuity.
  • Irrevocable
    Deferred income annuities are designed to provide income over a long period of time; therefore, they cannot be canceled or surrendered.3


In a deferred annuity, earnings accumulate on a tax-deferred basis, so you don’t pay any taxes on the interest earnings until you withdraw them from the annuity.4

When a deferred annuity is annuitized, a portion of it is considered a return of your initial premium, and is not taxable, but another portion is considered the "gain," which is taxable. This type of treatment often allows individuals to spread out their taxable gain over multiple years. The ratio changes over time, and a bigger portion of the income becomes taxable as the portion of your initial investment diminishes.

Choose how to earn in retirement with deferred income annuities.


Deferred annuities give you choices whenever you decide to retire, whether you want predictable payouts you can count on right away or you prefer the opportunity to get even higher payouts down the road. Find out which deferred annuity product is right for you:

Guaranteed Future Income Annuities

People who want level and predictable income when they retire prefer this option. Enjoy knowing you have a guaranteed pension-like stream of income for the rest of your life.

Future Mutual Income Annuities

People who are seeking higher potential income down the road prefer this option. You’ll get steady guaranteed payouts, but you’ll also have the potential for additional income through non-guaranteed dividends.

Fixed Deferred Annuities with Lifetime Income

Think about this option as a guaranteed and predictable income stream with the flexibility to access some of your money if you need it.4 This is for people who are willing to get a little less income in exchange for some flexibility, in case life changes.

Want to learn more about deferred income annuities?

A New York Life financial professional can help determine what’s right for you.

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1 All guarantees are backed by the claims-paying ability of NYLIAC. Products available in approved jurisdictions.

2 Taxes and other restrictions may apply.

3 This contract is irrevocable, it has no cash-surrender value, and no withdrawals are permitted prior to the income start date. Income payments are guaranteed at least as long as the annuitant is living, provided that the annuitant is alive on the designated income start date. Contracts in which a life only payout option is selected do not provide a death benefit—either prior to, or after, the designated start date. The deferred income annuity dividend-paying version is not available in New York.

4 Withdrawals may be subject to regular income tax, and if made prior to age 59 ½, may be subject to a 10% IRS penalty. In addition, surrender charges may apply.

All guarantees are backed by the claims-paying ability of the issuer. The New York Life Clear Income Fixed Annuity is issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Company, 51 Madison Avenue, New York, NY 10010. All guarantees are dependent on the claims-paying ability of NYLIAC. Available in jurisdictions where approved; not available in New York. Policy form numbers are ICC14-P010 (book value) and ICC14-P120 (MVA). State variations may apply.

Future Mutual Income Annuity is issued by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.; All guarantees are dependent on the claims-paying ability of the issuer. Available in jurisdictions where approved. The policy form number is 215-P200. State variations may apply. SMRU1893283