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Definition of 'Annuitant'

An annuitant is a person who receives an annuity. An annuity is a contract between an insurance company and an individual in which the insurance company agrees to pay the individual a fixed sum of money on a regular basis for a specified period of time. The annuitant can be any person, regardless of age or income.

There are two main types of annuities: immediate annuities and deferred annuities. An immediate annuity begins to pay out immediately, while a deferred annuity does not begin to pay out until a later date, such as retirement.

Annuities can be used for a variety of purposes, such as providing retirement income, funding a child's education, or leaving a legacy. They can also be used to supplement other sources of income, such as Social Security or a pension.

There are a number of factors to consider when choosing an annuity, such as the type of annuity, the amount of the annuity, the payment frequency, and the length of the annuity. It is important to work with a financial advisor to make sure that you choose the right annuity for your needs.

Annuities can be a valuable tool for retirement planning, but it is important to understand how they work before you purchase one. By working with a financial advisor, you can make sure that you choose the right annuity for your needs and that you get the most out of your retirement savings.

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