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Home / Retiree / Accessing super / Retirement income: When is the optimal time to purchase a deferred annuity?

Retirement income: When is the optimal time to purchase a deferred annuity?

Sean Corbett

Is there an optimal time (during retirement) to purchase a deferred annuity?

The short answer is as soon as possible, for reasons I will explain in a moment.

But first, what is a deferred annuity?

What is a deferred lifetime annuity (DLA)?

A DLA is a form of lifetime annuity that will pay the owner a guaranteed income stream, starting at a future date, for as long as they live after that date. This can give people confidence to spend more of their savings in the early, active years of retirement with the security of knowing their money won’t run out. 

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About the author

Sean Corbett
Sean Corbett has worked in the superannuation industry for 25 years, principally in the areas of product management and product development. He has worked at Connelly Temple, Challenger, Colonial Life and Oasis Asset Management where he specialised in annuities. Sean holds a Bachelor of Commerce from Queensland University and also holds an undergraduate degree with honours in economics and a masters degree from Cambridge University.
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