An individual who receives payments from an annuity, a financial product that provides income streams at specified intervals, typically as a retirement tool.
Annuitize refers to the process of converting the accumulated capital in an annuity into a series of periodic payments. These payments can be for a fixed amount, over a fixed period, or for the lifetime of one or more annuitants, ensuring a guaranteed income stream that cannot be outlived.
An annuity is a financial contract in which the purchaser makes an upfront payment to an insurance company in exchange for regular, structured payments either for a specific period or for the remainder of the purchaser's life.
An annuity certain is a type of annuity where payments continue for a specified period regardless of the life or death of the policyholder.
A defined-contribution pension scheme is a type of retirement plan wherein the benefits received depend on the contributions made by the member, the investment performance of those contributions, and the annuity available at retirement. Unlike defined-benefit plans, the pension amount is not predetermined.
A pension plan funding instrument in which contributions paid by an employer are deposited to accumulate at interest, and an immediate annuity is purchased upon retirement for the employee. The benefit is determined by a formula and the investment earnings on funds left to accumulate at interest.
A Guaranteed Income Contract is a financial instrument commonly used in the investment and insurance industries to provide a stable, guaranteed stream of income over a specified period of time.
The present value (PV) of an annuity is the current value of a series of future payments, discounted at a specific interest rate over a specific number of periods. It is a fundamental concept in finance and accounting, allowing individuals and businesses to evaluate the worth of future payments in today's terms.
