Deferred Annuity Calculator

Online Deferred Annuity Calculator

This simple online deferred annuity calculator can be used to estimate how much you can save for the future.  It assumes you will make an initial contribution right away, and then add $x each year. So you simple have to fill in your first contribution, your yearly payments, your interest rate, and the amount of years you plan to keep adding to the fund before you take any withdrawals.

Page below the calculator to see examples and learn more. The tool cannot predict the future, or possibly know the details of any particular annuity contract you may have. It is meant as a very simple way to illustrate how an annuity can help you save more for future goals like retirement.

Single Premium Deferred Annuity Note: If you plan on just making an initial contributiuon, set the yearly contributuion to 0.

People may use a deferred annuity as a way to :

• Save for retirement. By making yearly contributions, you hope to build an asset that could provide a lump sum of cash or income for the future.
• Save for other financial goals. You may use your annuity to save for a child’s education, home purchase, etc. We tend to associate annuities with retirement planning, but they could have other uses.

Deferred Annuity Example

For example, you may choose to seed your annuity with $1,200 today. Then you can add $1,200 a year for 15 years. We will also assume a 5% average return on your money. In this case, you would have actually invested $19,200. In the end, you would have $23,657 saved.

This example is not meant to illustrate any particular vehicle, but just to explain how this online tool can work to help you estimate your savings. Savings should grow in a tax deferred manner as well, so you will not have to pay taxes off the growth while you are contributing. You may, or may not, have a tax liability when you withdraw.