No, that’s not a typo. Admittedly, most annuities advisors push are over-priced and unnecessary. But there’s one in particular that many about-to-be retirees should consider: a deferred income annuity, or DIA.

Here’s how it works. (Don’t worry. This is really simple.) You invest a sum of money with an insurance company. They agree to pay you back a pre-determined monthly amount … not now, but when you’re much older. By waiting 10 or 15 years, you are entitled to a much larger check than if you don’t wait. For example, if you buy an annuity at age 65 and wait until age 80 for the income to start, the monthly payment would be 3-4 times higher, according to a popular website, www.immediateannuities.com.

Why wait, given the risk you may not live long enough to collect?

A DIA makes sense for people who will have enough money if they pass away at an average age, but who may face a shortfall if they live into their 90s or longer. If that’s you, the income boost late in life may make all the difference.

There is a “free” DIA available to all Americans — delaying taking Social Security to 70, to earn a higher payment. It has a similar effect. But if you want suspenders and the belt, consider a deferred income annuity.