Deferred Payment Gift Annuity

If you want to supplement your future retirement income but are also in need of a current income tax deduction, you might want to consider the Deferred Payment Charitable Gift Annuity. With a deferred annuity, you make a gift today but "defer" your income payments until some predetermined future date, often coinciding with your planned retirement. You also realize an immediate income tax deduction in the year you make the gift. At your death, the remaining proceeds from the gift come to Vassar to be added to its general endowment or to support whatever purpose you had designated.

The amount of your future annual payments is dependent upon your age at the time of the gift and the length of time you choose to "defer" the payments. This "deferral" often results in higher payout rates and a higher income tax deduction when compared with the immediate annuity. For these reasons, this kind of arrangement often appeals to 1) younger donors who need the benefit of a current tax deduction, but are also interested in providing for future income needs and 2) older donors who are willing to delay their payments a year or two in order to secure a higher payout rate.

At Vassar, a beneficiary can be any age but must defer the income until at least age 60 and the minimum gift amount is $10,000. (Existing deferred gift annuity donors who wish to make additional gifts may do so with just $5,000.)

Listed below are a sampling of rates currently offered by Vassar (as set by the American Council on Gift Annuities.) To request a personal gift illustration from the gift planning staff, please Alexas Orcutt with the Gift Planning Office at (845) 437-5487 or (800) 443-8196 or use our information request form. If you'd prefer to run a sample calculation yourself, please use the planned gift calculator.

Deferred Payment Gift Annuity Rates*

Deferring Income at Age 65

Age at Time of Gift	Deferring Age	Payout Rate (%)
40	65	15.8
45	65	15
47	65	13.7
50	65	11.9
55	65	9.9
57	65	8.9
60	65	7.7

Deferring Income Over Age 65

Age at Time of Gift	Deferring Age	Payout Rate (%)
60	70	10.7
65	70	8.3
70	72	7.3

* American Council on Gift Annuities rates effective as of July 1, 2003. ↑top