Who is referred to as the annuitant in an annuity payment?

In the context of an annuity payment, the term "annuitant" specifically refers to the person who receives the benefits of the annuity. This individual is entitled to receive regular payments as agreed upon in the annuity contract, which typically functions as a retirement income source or investment vehicle.

The annuitant can be distinct from the owner of the annuity, especially in situations where the owner and beneficiary vary; for instance, one may buy an annuity for a loved one, making the loved one the annuitant while the owner retains different rights. Understanding this definition is crucial because it emphasizes the role of the annuitant as the primary beneficiary of the contract's payouts, signifying a personal financial relationship with the benefits generated by the annuity.