A deferred annuity is a financial product designed to provide income at a future date, typically during retirement. It allows individuals to invest money over time, accumulating interest or investment returns. The funds are not accessible until a specified period has passed, which can help in long-term financial planning. During the accumulation phase, the money grows tax-deferred, meaning you won't pay taxes on the earnings until you withdraw them. Once the payout phase begins, the annuity can provide regular income, which can be beneficial for managing expenses in retirement. This product is often used in conjunction with retirement accounts like 401(k)s or IRAs.