Why may someone choose a deferred payment gift annuity over one that makes immediate payments?
A. Delaying the start of payments for a period of time may be especially appealing to people who have not yet retired, but would like to supplement their future income once they do. Example: Betty, age 60, would like to make a special gift but is also concerned about planning for her retirement. Through a deferred payment gift annuity, she can make a gift now and receive an immediate tax deduction, while postponing the payments for 10 years until her retirement, when her need for the income may be greater.
