Annuity Factor Method
- A method used to determine how much an individual can withdraw from an annuity before being penalized. The annuity factor method primarily uses life-expectancy data to determine withdrawal limits.
annuitization factor method, annuity withdrawal method
Related Terms and Acronyms
- Certified Annuity Specialist (CAS) — Acronym, Important,
- A professional who is certified to provide investment advice about annuities to clients.
- Future Value of an Annuity (FVA) — Acronym,
- The value of an annuity at some future date.
- Life Expectancy Method — Definition,
- A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
- Present Value Interest Factor of Annuity (PVIFA) — Acronym,
- A method used to find an annuity's present value.
- Substandard Health Annuity — Definition,
- An annuity with increased income payments for people with shorter life expectancies due to medical conditions.