A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- AnnuityA contract with an insurance company that converts a sum of money into a stream of steady payments over time.
- Immediate AnnuityAn annuity that begins paying you income right after you hand over a lump sum, often used at the start of retirement.
- PensionA retirement plan where your employer promises a set monthly payment for life, usually based on your salary and years worked.
- Lump-Sum DistributionTaking your entire retirement benefit as one large payment instead of receiving it as monthly income over time.
- Longevity RiskThe chance that you outlive your retirement savings because you live longer than your money was planned to last.
- Retirement IncomeThe money you live on after you stop working, drawn from savings, Social Security, pensions, and other sources.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.