Longevity Annuity

Pensions - defined contribution - US.

Longevity annuities are designed to deal with the US pensions problem of retired people 'outliving their savings' caused by the US Required Minimum Distributions rules.

Longevity annuities do not start paying out until later in life, so they can pay out higher annual amounts in those later years, while still enjoying favourable tax treatment.

Longevity annuities are contrasted with immediate annuities, which start to pay out immediately.

See also

• 401(k) plan
• Annuity
• Contributions
• Defined contribution pension scheme
• Internal Revenue Service
• Occupational pension scheme
• Qualified Longevity Annuity Contract
• Required Minimum Distribution
• Stakeholder pension scheme
• United States