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.

  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Nest Egg

    A substantial sum of money that has been saved or invested for ...
  3. Qualified Joint And Survivor Annuity ...

    An annuity payment from a qualified plan or 403(b) account that ...
  4. Annuitant

    1. A person who receives the benefits of an annuity or pension. ...
  5. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  6. Accumulation Phase

    1. A period of time when an annuity investor is in the early ...
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  1. How liquid are variable annuities?

    Variable deferred annuities and variable immediate annuities are not considered liquid. Variable deferred annuities carry ... Read Full Answer >>
  2. Do variable annuities have RMDs?

    Variable annuities are not subject to required minimum distributions (RMDs) unless they are held in qualified plans, such ... Read Full Answer >>
  3. Can variable annuities be rolled into an IRA?

    Variable annuities are often found in government or nonprofit employer retirement plans such as 403(b) or 457(b) plans. With ... Read Full Answer >>
  4. How do I calculate the future value of an annuity?

    When planning for retirement, it is important to have a good idea of how much income you can rely on each year. There are ... Read Full Answer >>
  5. Are variable annuities protected from creditors?

    Whether your variable annuity is protected from creditors depends on the state in which you live. About three-quarters of ... Read Full Answer >>
  6. Are variable annuities tax deferred?

    Variable annuities are tax-deferred. This means an investor does not pay taxes on the interest income from his annuity until ... Read Full Answer >>

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