What Does Systematic Withdrawal Schedule Mean?

The expression refers to an annuity withdrawal method which is based on a systematic planning. The method has both advantages and disadvantages, but the main idea is as follows. The annuitant may withdraw money from his or her annuity account as frequently as he or she can until the account is run out. This however implies that annuitants are not secured financially for their entire lives, or at least it may happen that one’s account becomes annulled in one’s own life, and thus the withdrawals are stopped.

Systematic Withdrawal Schedule Explained

One of the main disadvantages of this withdrawal method is that is does not provide any guarantee to the annuitant for lifelong payments. So in case of a longer lifespan than the annuitant expected, it is much more risky than the standard method for annuities, which provides the annuitants with lifelong payments.

However, systematic withdrawal schedule is still a good choice as it allows annuitants to get funds from their accounts as soon as they want, almost as bigger an amount as they intend to get, and almost as frequent as they want. So there is no limitation concerning the withdrawn amount.