life annuity

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Life annuity

An annuity that pays a fixed amount for the lifetime of the annuitant.

Life Annuity

A fixed or variable annuity that pays a certain monthly or (rarely) annual sum for life of the annuitant. Generally speaking, an annuitant buys a life annuity and makes installment payments for it throughout his/her working life. Following retirement, the annuitant begins to receive the benefit, the amount of which may or may not be fixed in the annuity contract. A life annuity is designed to provide a stable income for the annuitant in retirement. See also: Income annuity, Pension, IRA, 401(k).

life annuity

A stream of payments intended to continue during the annuitant's lifetime and to cease automatically at the annuitant's death.
References in periodicals archive ?
Those who live longer on lifetime annuities will also receive more income over their lifetimes and, all else being equal, they'll end up with higher legacy amounts.
Standard lifetime annuities are currently paying close to historically low levels which is encouraging more people to look at alternative strategies, such as delaying purchase of a lifetime annuity by using a fixed-term annuity or by seeking to keep growing the pension pot through investment-linked options.
Many retirement policy experts have been promoting use of inflation-indexed, fixed, lifetime annuities to help boomers fund retirement expenses.
Certain retirement benefits and lifetime annuities have historically been taxed differently based on the gender of the recipient.
The authors show that these changes produced negative effects on the rates of return earned on some retirement benefits and lifetime annuities. The impact on any single individual must be determined by the specific set of facts related to the individual, and this article provides an approach to evaluating these individual circumstances.
This results in a lower rate of return on certain retirement benefits and lifetime annuities for both sexes.
Improving the tax treatment of deferred lifetime annuities to be consistent with other retirement income streams will allow Australian retirees to deal more effectively with longevity risk says global professional services company Towers Watson.
Andrew Boal, managing director for Towers Watson in Australia says the federal government announcement that it will encourage the take-up of deferred lifetime annuities (DLAs) represents a watershed moment for the Australian superannuation industry.
In the "red corner" we have the historic champions, the big insurance companies who have dominated the retirement income market for many years through sales of lifetime annuities.
This is particularly important at a time when the income paid by lifetime annuities is at its lowest for many decades and once bought, there is no escape.