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annuitization phase

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Financial Dictionary

Annuitization Phase

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.

Investopedia Commentary

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.

Related Links

Introductory Tour through Retirement Plans
Determining Your Post-Work Income
Passing the Buck: The Hidden Costs of Annuities

See also: Accumulation Phase, Annuitant, Annuity, Individual Retirement Account - IRA, Nest Egg

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