Definition - What does Annuitize mean?
Annuitize is a process by which an individual converts from the accumulation stage to the pay out stage of an annuity contract. This is accomplished by exchanging accumulation units for annuity units. Once a pay out option is selected it cannot be changed.
Testopedia explains Annuitize
When an investor who has contributed to annuity contract reaches retirement age the investor will convert the annuity contract from the payment or deferred stage to the payout stage. When the investor converts the contract the investor exchanges their accumulation units for annuity units and is said to have annuitized the contract.