SPIA is the common abbreviation for single premium immediate annuity, an annuity funded with a one-time lump sum that begins making guaranteed income payments within a year. SPIAs can be structured for life, for a specific term, or for life with period certain, and may feature level or inflation-adjusted payments. By pooling longevity and investment risk, SPIAs can provide higher, more stable income than many fixed-income alternatives, particularly at older ages. However, they typically offer little or no liquidity once payments begin. SPIAs are often used to cover essential retirement expenses or to convert a portion of assets into a personal pension-like stream of income.

Advisors use the shorthand SPIA in discussions with wholesalers, underwriters, and clients when evaluating annuitization strategies. They compare SPIA quotes from multiple carriers, analyze internal rates of return under different life expectancy scenarios, and coordinate SPIA income with Social Security, pensions, and portfolio withdrawals. Suitability reviews assess whether clients can afford to give up access to principal and how SPIA income fits with their risk tolerance and legacy goals. Some planners ladder SPIAs over time to manage interest rate risk. Understanding SPIAs allows advisors to position them as simple, transparent tools for secure retirement income rather than complex investment products.