When you begin annuity payouts will matter as well. Your monthly, quarterly or or yearly payout will be lower, for example, if you begin payouts when you’re 62, then it will be if you wait until you’re 70., Whether you’re starting income now (immediate annuity) or later (deferred annuity), the monthly payout is what determines if it was worth it. But how are those payouts calculated, what affects them, and how can you squeeze the most value out of what you’re buying?, Key takeaways Choosing the right type of annuity payout depends on when you want payments to start, how long you want them to last and if you want a survivor’s benefit., There are several phases in the life of an annuity: the accumulation, annuitization, and payout phases. The accumulation phase is the first stage during which an annuity builds up cash value utilizing gathered funds. It always comes first and begins after an initial investment is made., While there is no single right option for receiving annuity payouts, you should always base your choice on your current financial needs, retirement goals, and input from your annuity expert. With annuities, you have choices., With annuitization, you convert the money in your contract into a permanent stream of income payments that is irreversible. Once done, you can’t take it back. The benefit is you receive guaranteed monthly income, but on the flip-side, you lose control over access to your money..