Annuitization is the process of converting a lump sum (or accumulated annuity value) into a guaranteed income stream, typically for life. Types of annuitization payouts: life-only (highest payment, ends at death), life with period certain (10-20 year guaranteed minimum), joint and survivor (continues to spouse), period certain (fixed term). Once annuitized, the decision is generally irreversible — you trade liquidity for income guarantee. Annuitization makes sense for retirees wanting to eliminate longevity risk; less appealing if leaving assets to heirs matters more. Modern alternatives include systematic withdrawals from invested portfolios, which preserve liquidity.
Article
403(b)
A 403(b) plan is a retirement plan for employees of public schools, nonprofit hospitals, charities, and religious organizations…
457(b)
A 457(b) plan is a retirement plan for state and local government employees and certain nonprofit employees. Unique…
Annuity
An annuity is an insurance contract paying a stream of income, often for life — designed to provide…
Backdoor Roth Conversion
The Backdoor Roth Conversion strategy enables high earners who exceed Roth IRA income limits to fund a Roth…
Beneficiary IRA
A Beneficiary IRA (Inherited IRA) is a retirement account inherited from a deceased owner. Post-SECURE Act 2019, most…
Bucket Strategy
The bucket strategy is a retirement withdrawal approach that segregates assets by time horizon into 'buckets': Bucket 1…
Annuitization
August 22, 2026 · Aditya Gupta
Personal Finance
Related terms
403(b)
A 403(b) plan is a retirement plan for employees of public schools, nonprofit hospitals, charities, and religious organizations…
457(b)
A 457(b) plan is a retirement plan for state and local government employees and certain nonprofit employees. Unique…
Annuity
An annuity is an insurance contract paying a stream of income, often for life — designed to provide…
Backdoor Roth Conversion
The Backdoor Roth Conversion strategy enables high earners who exceed Roth IRA income limits to fund a Roth…
Beneficiary IRA
A Beneficiary IRA (Inherited IRA) is a retirement account inherited from a deceased owner. Post-SECURE Act 2019, most…
Bucket Strategy
The bucket strategy is a retirement withdrawal approach that segregates assets by time horizon into 'buckets': Bucket 1…
