What is an Annuitant and What Does it Mean to be One?

Shawn Plummer

CEO, The Annuity Expert

An annuitant is a person who receives payments from an annuity. Annuities are financial products that provide a stream of payments to the holder over a period of time. There are many different types of annuities, but all have one common goal: to provide retirement income for the holder. This guide will discuss what an annuitant is and how it can benefit you!

Annuitant Definition

The definition of an annuitant is “the person(s) upon whose lifetime(s) the annuity payments may be based.”

What Is An Annuitant?

An annuitant is an individual who receives regular payments from an annuity. Annuities are financial products that are often used as retirement planning tools. You make a lump-sum payment to the insurer when you purchase an annuity. The insurer then agrees to make periodic payments to you, starting immediately or at some point in the future. The payments can be made for a set period of time, such as 10 or 20 years or the rest of your life.

Who Should Be The Annuitant?

When making decisions about your financial future, it’s important to consider who will be your policy’s annuitant. The annuitant should be the person who owns the policy and will receive payments from the policy, but the annuitant does not have to be the same as the contract owner.

While it’s usually best to name yourself the annuitant, in some circumstances naming someone else may make more sense.

For example, if you’re married, you may want to name your spouse as the annuitant, so they can continue to receive benefits even if you die first. Or, if you have children, you may want to name one of them as the annuitant so that they can use the policy to help pay for college or other expenses. 

Does The Annuitant Control The Annuity Contract?

There are a lot of misconceptions out there about annuities. One of the most common is that the annuitant – the person who receives payments from the annuity – controls the account. This is not true unless the annuitant is also the annuity owner. The owner of the annuity is the one who controls it and can make changes to how and when payments are made. 

Can The Annuitant Change The Annuity Owner?

Once an annuity contract is signed, the annuitant generally cannot change the annuity owner. This is because the annuity is a legally binding contract between the annuity issuer and the owner. The annuitant is simply the person who will receive the payments from the annuity. In most cases, the annuity owner is also the annuitant.

Does The Owner Or Annuitant Pay Taxes On The Annuity?

The owner pays taxes on the annuity. 

What Is The Difference Between A Retiree An An Annuitant?

Many people use the terms retiree and annuitant interchangeably, but there is a big difference between the two. A retiree is someone who has retired from active employment, usually after reaching a certain age or working for a certain number of years. An annuitant, on the other hand, is someone who receives regular payments from an annuity. Annuities can be purchased by individuals or employers as a retirement benefit and generally provide a fixed income for life. So, while all retirees are annuitants, not all annuitants are retirees.

What Happens When An Annuitant Dies?

When someone purchases an annuity, they are typically doing so to provide themselves with a source of income during retirement. However, it is also essential to consider what will happen to the annuity in the event of your death. For example, if you are the annuity owner and die before the annuity has been fully paid out, the primary beneficiaries you have designated will inherit the remaining balance. 

Next Steps

Contact us if you’re interested in learning more about annuities and how they could benefit you. Our team of experts would be happy to provide you with a free quote and answer any questions. Thanks for reading!

What Is An Annuitant?

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Frequently Asked Questions

Who receives lifetime payments from an annuity?

The annuitant receives the lifetime payments from an annuity. An annuitant’s spouse can receive the lifetime payments if a joint-life payout is selected.

What does annuitant mean?

An annuitant is a person or entity receiving payments from an annuity.

Who is considered the annuitant?

The person or entity designated to receive payments from an annuity is considered the annuitant.

Is an annuitant the same as a beneficiary?

No, an annuitant is not the same as a beneficiary. An annuitant is a person or entity designated to receive payments from an annuity, while a beneficiary is the one who receives any benefits or assets in the event of death or other circumstance.

What is the difference between a retiree and an annuitant?

A retiree is someone who has met the qualifications to receive retirement benefits, while an annuitant is a person or entity designated to receive payments from an annuity.

What is an annuitant in the federal government?

An annuitant in the federal government is an individual or entity that receives payments from the federal government due to an annuity agreement.

what is an annuitant?

An annuitant is a person who receives payments from an annuity, typically for life or a set period of time.

what does insured annuitant mean?

An insured annuitant refers to the person whose life is insured in an annuity contract. The insurance component provides a guaranteed stream of income payments to the annuitant or their beneficiary in the event of their death.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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