Annuitization
RetirementConverting a lump sum (from an annuity or retirement account) into a stream of periodic payments, often for life.
Example
Example: For someone with $300,000 in retirement savings planning to retire at 65, annuitization directly affects their strategy. Since it involves converting a lump sum (from an annuity or retirement account) into a stream of periodic, understanding this concept could mean an extra $50,000-$100,000 in retirement assets. Plan with our retirement calculator.