Annuities

(redirected from annuitized)
Also found in: Dictionary, Thesaurus, Legal, Financial.
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

Annuities

 

a form of state loan by which the creditor periodically receives a certain income (rente), established on the basis of a gradual liquidation of the capital sum and interest on the debt. There are fixed-term and life annuities. In the case of the former, the payment of income is limited in time (usually the period is quite long) and may be transferred to another individual. In the case of lifetime annuities, income may be received only by the immediate creditor, and the payment of rente ceases with the death of the holder. The price of annuities derives from the market level of loan interest rates. The size of the annual payment on lifetime annuities is determined in accordance with the age of the creditor and statistical data on the mortality of the population. In Britain and France annuities were issued in the early 19th century in order to speed up the liquidation of termless loans, the latter being exchanged for fixed-term or lifetime loans. In non-European countries annuities spread in the 17th and 18th centuries: in the USA they were issued during the consolidation of the state debt, which arose during the War for Independence (1775–83).

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
For the average family headed by a person 62 or older, two-thirds of total income consists of some form of annuitized income-Social Security, public or private employee pensions, or annuities.
Tim Barton, principal of Future Financial Images, Pepin, Wis., agrees, adding that the FIA's ability to offer clients a choice between principal and indexed earnings is especially relevant in light of a key market statistic: 98 percent of annuities are never annuitized. The alternative offered by variable annuities, forgoing access to principal to secure the income benefit is tantamount, says Barton, to a "legal divorce" from one's money."
In today's low interest rates $1 million (annuitized) would generate close to $80,000 guaranteed income as long as he's (the client is) alive.
The annuity payment rate of the trust was 2.4% and 25% of the value of the assets transferred to the trust was annuitized. (11)
Assets held in PRAs or financial assets held outside of retirement accounts are typically not annuitized and are instead spent or saved at the owners' discretion.
Taking Their "Lumps": The reported percentage of DB plan participants taking lump-sum distributions declined from 51.8% as of 6/30/2009 to 49.7% as of 6/30/2010, which could be an indication that more participants are realizing the advantages of annuitized payments.
"We have even developed an investment structure where these investors can actually get physical, annuitized cash returns from these participations."
Lawmakers crafted the statutes to protect consumers from businesses that entice prize winners to take an immediate - but usually much smaller - lump sum in trade for annuitized payments.
When an annuity is annuitized, the owner losses all control over the underlying funds, has no right to make investment decisions, and gives up any rights to accelerated payments.
(The annuity contract owner has essentially the same ownership rights as the owner of a life insurance contract.) Under the annuity contract, the owner names the individual who will serve as the annuitant, names the individual or entity who will be the beneficiary under the contract, determines when the contract will be annuitized, and has the power to make partial withdrawals from the contract or fully surrender the contract for its cash value.