Annuitization Phase

DEFINITION of 'Annuitization Phase'

The annuitization phase, also known as the annuity phase, is the period when the annuitant starts to receive payments from the annuity. This period is after the accumulation phase where money is invested into the annuity.

BREAKING DOWN 'Annuitization Phase'

When one retires they often rely on their savings as a source of income, after retirement annuities are rolled over from the accumulation phase to the annuitization phase, providing income for retirees. The more that was originally invested into the annuity, the more that will be received when the annuity is paid out.