An annuity is an investment that provides steady payments over a period of time. The annuity commencement date is the day your annuity starts paying you fixed income or variable income, depending on the type of annuity you have purchased. In this blog post, we will explore what it means to have an annuity commencement date and how to choose one that works for you.

When to Choose Your Annuity Commencement Date?

The timing of your annuity commencement date is important as it will determine when you start receiving payments. Generally, most people choose a commencement date within 30 days after purchasing the annuity. However, some people may choose to defer the start of their payments for up to five years from when they purchase the annuity. This can be beneficial if you need time to build up your investments or if you are looking for tax advantages with your annuity.

It’s important to note that each state has its own rules and regulations regarding selecting an annuity commencement date and waiting periods for different types of annuities. It’s best to check with your financial advisor or insurance provider before selecting a commencement date so you make sure you’re not missing out on any potential benefits or tax savings.

What Are The Benefits Of Choosing An Annuity Commencement Date?

Choosing an appropriate commencement date can help ensure that you take full advantage of all the benefits available through an annuity. For example, many investors opt for immediate fixed-income payments since they want to start receiving regular payments right away instead of waiting several years. This allows them to benefit from their investment immediately rather than waiting until later in life to receive any returns on their investments. Additionally, some states offer tax incentives and other benefits if you start receiving payments within a certain timeframe, so it’s important to do your research beforehand and understand all the options available in order to make the best decision possible for your financial goals.


Annuities can provide security during retirement by providing steady income over time and protecting against inflation risk. When considering whether or not an annuity is right for you, it’s important to understand what it means when choosing an annuity commencement date as this will have significant implications on when and how much money you receive from your investment. It’s best practice to discuss all available options with a qualified financial advisor before making any decisions so that you can take full advantage of all potential benefits available with an annuity product while also meeting your personal financial goals and objectives.

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