What term describes an annuity where payments start later than one year?

A deferred annuity is an investment product where the payments or distributions to the annuitant begin at a future date, typically after one year. This type of annuity allows the accumulated funds to grow on a tax-deferred basis until the payout phase begins. This growth can result from interest, dividends, or capital gains, depending on the structure of the annuity.

In contrast, an immediate annuity starts making payments almost immediately, usually within a year of the initial investment. Meanwhile, terms like scheduled annuity and comprehensive annuity do not refer specifically to the timing of payment starts and may describe other aspects of annuities or insurance products without specifically identifying the deferral period. Thus, using the term "deferred annuity” accurately characterizes those financial products aimed at a future payout rather than immediate distribution.