Definition of Accumulation Phase

The accumulation phase is a time period, which starts from the annuity investments and ends with the person’s retirement.

It period can be defined as the working time of the person’s life period.  The more the investor sets aside the funds/valuables and saves them, the higher returns he gets after retirement.

Brief Explanation of Accumulation Phase

It is followed by the annutization, in which the individual receives a stream of periodic payments later in the life on a regular basis.

If a person is still working and saving money, then the person is said to be in the accumulation phase.  It is the future investment for a future income source to get through the phase of retirement or God forbade any kind of disability. The length of the accumulation period differs from individual to individual. The more a person invests in an annuity, by staying longer in accumulation period, the more he gets the advantages later in retired life.