For which individual would a flexible premium deferred annuity be most suitable?

A flexible premium deferred annuity is particularly suitable for individuals who prefer to make ongoing contributions over time, allowing for the investment to grow before they begin receiving income in the future. In this case, John, who wants to contribute monthly and start payouts at retirement, aligns perfectly with the structure of a flexible premium deferred annuity. This type of annuity enables him to set up a systematic monthly contribution that can accumulate value through interest or investment gains, and then convert to an income stream at a designated retirement age.

This makes it ideal for John, as he can adjust his contributions based on his financial situation while also ensuring a source of income later in life, which is a fundamental purpose of annuities. The flexible nature of his contributions allows for personal and financial circumstances to adapt over time, making it a well-suited option for someone looking toward their long-term retirement planning.