Accumulation Phase

The accumulation phase is the "hard work" part of contributing to an annuity. Investors contribute some generally set amount, quarterly, annually, and/or every other Groundhog Day, until the full amount of their accumulated contributions has been met.

Time passes after this accumulation phase has ended. Then come the glory years called the annuitization phase, where the gain on those annuity payments are payed out to the investor. See Annuity for the gory details on how this semi-complex insurance product works and/or doesn't work.