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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Accumulation Period

Definition:

You're pouring your hard-earned bux into an annuity so that one day you can live comfortably.

But here's the thing: funding an annuity takes time. The time you spend funding that annuity and gathering money into it is the accumulation period. What happens after this period? The good stuff—also known as the annuitization phase. That's when your annuity pays you so that you can play golf and show up for the blue plate special dinners at 4:59PM.