The Flexible Gift Annuity

If you would like to plan for retirement but are unsure of when you might retire, a flexible deferred gift annuity might be an option. You can fund an annuity today but defer income payments until a future date when your income tax bracket may be lower. While a standard deferred gift annuity requires you to choose a date to begin receiving payments, a flexible deferred gift annuity allows you to postpone deciding when those payments will begin and instead choose a range of years. The longer you choose to delay the payments, the higher the payout rate.

Number of Years Annuity Deferred Age Annuity Rate Annual Payment
10 65 7.6% $1,520
15 70 9.6% $1,920
20 75 12.8% $2,560

The table above shows sample rates and payments based on a $20,000 gift annuity funded in 2014 by a 50-year old donor who chose a ten-year range beginning at age 65. The charitable deduction is based on the earliest date of that range. Regardless of how you choose to structure your gift annuity payments, your gift will ultimately benefit the University in an area of your choosing.

To explore further, try our calculator. For a personalized illustration, contact the Office of Gift Planning at 866.241.9802 or giftplan@uchicago.edu. Please note that gift annuities are not available in some states.


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