Work out deferred annuity instantly with clear inputs, formula shown and shareable results.
A deferred annuity starts paying after a waiting period. Value it in two steps: the annuity value at the first payment date, then discount that back over the deferral — which is why deferring reduces the price sharply.
Deferred annuity
PV = P(1-(1+r)^-m)/r × (1+r)^-d
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
The insurer holds your money and earns on it before paying anything, and some buyers do not survive to the start date.
Inflation over a long deferral, unless the payments are index-linked.