Annuitise

To annuitise means to convert a lump sum of money, often accumulated in a retirement account or investment fund, into a stream of periodic payments that are guaranteed for life or a specified period.

This financial process is a key feature of annuity contracts where, upon annuitisation, the policyholder essentially locks in a fixed income, relinquishing access to the principal sum in exchange for the security of regular payments.

These payments are determined by the value of the annuity, the annuitant's life expectancy, and other contractual terms set forth by the insurance company.