What does the Deferred Income Option (DIO) allow an annuitant to do?

The Deferred Income Option (DIO) is designed to allow an annuitant to defer receiving income from their annuity to a specific future date. This is particularly advantageous for individuals who anticipate having other income sources in their earlier years and may prefer to have a guaranteed stream of income begin later, for instance, at age 85. By choosing to defer income, the annuitant can potentially receive a higher payout when they eventually start taking distributions, as the funds have more time to grow. This option reflects a strategy of long-term planning, ensuring that the annuitant has additional financial resources available later in life when they might require them more significantly, such as for healthcare or living expenses in retirement.

The other choices focus on different aspects of annuity features that do not align with the core purpose of DIO, which specifically revolves around delaying income.