Annuitization
RetirementGlossary term
Definition
The process of converting an annuity or retirement account balance into a series of regular income payments, often for life. Once annuitized, the decision is typically irreversible. Payment amounts depend on account value, age, and chosen payout option.
Related terms
- AnnuityA financial product that provides a guaranteed income stream, typically used for retirement. You pay a lump sum or series of payments, and receive regular payments for a specified period or for life.
- Retirement IncomeMoney received during retirement from various sources including Social Security, pensions, retirement account withdrawals, annuities, and investment income. Planning for multiple income streams helps ensure financial security throughout retirement.
- PensionA retirement plan funded by an employer that provides regular payments to employees after retirement. Increasingly rare in private sector, more common in government jobs.
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