The person who receives the benefits of an annuity or pension. Also sometimes known as the “beneficiary.”
The annuitant can be either the contract holder who purchases the annuity or someone else that person names as the receiver of benefits. If it’s the contract holder, then when the annuitant dies, the annuity proceeds are given to the beneficiary to protect him or her from loss of income.
An annuitant’s age is important because it determines how an annuity pays out. For example, depending on risk and life expectancy, the insurance company may make payments to an annuitant for life or only for a set amount of time. The insurer also determines how much each payout should be. Annuitants who are relatively young usually receive smaller payments over a longer period of time.
Gender also helps determine annuitant payout. Women tend to live longer than men, so insurance companies must budget for this fact-based on gender.