An Annuitant is an individual who is entitled to collect the regular payments of a pension or an annuity investment. The annuitant may be the contract holder or another person, such as a surviving spouse. Annuities are generally seen as retirement income supplements. They may be tied to an employee pension plan or a life insurance product. The size of the payments is usually determined by the life expectancy of the annuitant as well as the amount invested.Annuities can provide retirees with a steady stream of income that can help supplement other sources of retirement income, such as Social Security and 401(k) plans. There are two types of annuities: immediate and deferred. An immediate annuity starts making payments right away, while a deferred annuity doesn't start paying out until later on, often after you've retired from your job .One major benefit of purchasing an immediate annuity is that you know exactly how much money you'll receive each month for the rest of your life (or for a certain number of years). This certainty can give retirees peace of mind in knowing that they will have a decent monthly income even if their other retirement savings run out . Deferred annuities offer more flexibility because you're not locked in to receiving payments for life; instead, you can choose periods ranging from one year up to 20 years or more . However , deferred annuities tend to payout less than immediate annuities because there's more risk involved for the insurance company providing them .Whether you choose an immediate or deferred annuity , it's important to shop around and compare rates before making a decision . You don't want to end up paying too much in fees or other charges !
