Context of the question:
Next, Smith discusses the advantages and disadvantages of annuities. The Barksdales are interested in purchasing an annuity that offers the following characteristics:
a payout that begins at retirement,
the ability to invest in a menu of investment options, and
a payout that continues as long as either Olivia or Adrian is living.
Question Q.
Based on the Barksdales’ annuity preferences, which type of annuity should they purchase?
A.Deferred fixed
B.Deferred variable
C.Immediate variable
Answer is B, I chose C.
Why is the answer deferred variable, shouldn’t the answer be immediate variable, i thought annuities are usually paid at retirement. From my understanding, if you want to defer your annuity after retirement, you select the deferred variable.