The word 'annuitant' is correct and usable in written English.
You can use the word 'annuitant' to describe a person who receives money from a pension or annuity. For example: The annuitant received regular payments from the annuity every year.
Conversely, the issuer of a life annuity sees a lower pay-off when the annuitant lives longer than expected, because the beneficiary collects payments for a longer period of time.
They were generally sold according to a simple formula such as "seven years purchase," meaning that the annual payment to the annuitant, promised until the time of his or her death, would be one-seventh of the principal.
In simplified terms, if the stock market rises 10 percent in one year, the annuitant may expect payments to go up by approximately 10 percent in the following year.
For example, if payments to an annuitant aged 65 are to be guaranteed for 20 years, they will be substantially smaller than if they are guaranteed only for the remainder of the person's life.
Conversely, if the stock market drops 10 percent, the annuitant will suffer a 10 percent reduction in income.
To the extent that the stock market reflects changes in the cost of living, the annuitant's income is automatically adjusted for these changes each year; and, if the stock market also reflects increases in productivity in the economy, then the annuitant may expect to receive a share in such increases in the productivity as the economy may gain.
"Allowing annuitants to break the contracts means breaking the 'generational agreement' that has shaped the pension industry for years.
An even bigger issue is whether we can really expect insurance companies to offer annuities that will last for a lifetime if there is a caveat enabling annuitants to switch at any time.
The problem of inflation has led to experimentation with variable annuities in order to protect annuitants against decreases in purchasing power.
Charitable gift annuities can benefit a qualifying charity and the donors, who receive upfront tax deductions and lifetime income from the charity for the named annuitants, often the donors themselves.
Most reputable charities use rates recommended by the council, which vary with the annuitants' ages and whether there are one or two.
