FINANCIAL CALCULATORS
Deferred Annuity Calculator
Calculate the future value and payment structure of a deferred annuity product.
What is the Deferred Annuity Calculator & How does it work?
A deferred annuity is a financial product that allows you to accumulate funds over time, with payments beginning at a specified future date. This calculator helps determine the future value of your deferred annuity and the monthly payment structure based on your contributions.
The future value (FV) of a deferred annuity can be calculated using the formula:Understanding these calculations can help you plan your financial future and make informed decisions about annuity investments.
The future value (FV) of a deferred annuity can be calculated using the formula:
FV = P times left(frac{(1 + r)^n – 1}{r}right)
P = Monthly payment
r = Monthly interest rate (annual rate divided by 12)
n = Total number of payments (years multiplied by 12)
r = Monthly interest rate (annual rate divided by 12)
n = Total number of payments (years multiplied by 12)
Parameters
Future Value—
Frequently Asked Questions
What is a deferred annuity?
A deferred annuity is a retirement savings plan where contributions grow tax-deferred until you begin withdrawals.
How do I calculate the future value of my deferred annuity?
Use our calculator by inputting your monthly payment, annual interest rate, and total number of payments to find the future value.
What is the difference between a deferred annuity and an immediate annuity?
A deferred annuity delays income payments until a specified future date, while an immediate annuity starts paying out right away.
Can I contribute to a deferred annuity at any age?
Yes, you can start contributing to a deferred annuity at any age, as long as it is before the age of 70.5.
How does the interest rate affect my deferred annuity's future value?
A higher interest rate increases the future value of your deferred annuity because more earnings are compounded over time.
What happens if I withdraw money from my deferred annuity before age 59.5?
Early withdrawals may be subject to taxes and a 10% penalty, so it's best to leave the funds untouched until after this age.
Can I change the payment amount or frequency in my deferred annuity?
The terms of your deferred annuity will dictate whether you can change the payment amount or frequency. Contact your financial advisor for details.
Results are for informational purposes only and do not constitute professional advice.