• Annuities are financial products that offer a guaranteed income stream, typically for retirees.
  • The accumulation phase is the first stage of an annuity, when investors finance the product either in a lump sum or in periodic payments.
  • The annuitant begins to receive payments after the annuitization period for a certain period or for the rest of his life.
  • Annuities can be structured into different instruments, giving investors flexibility.
  • These products can be divided into immediate and deferred annuities and can have a fixed or variable structure.