The date on which annuity payments begin. The longer the annuitant waits to begin receiving payments, the higher the payments will be because the life expectancy period is shortened and the insurance company paying the annuity has a longer time to invest the money. Typically, people donÂ’t begin receiving an annuity until after 59⁄ years of age because withdrawals before then are subject to a 10 percent penalty from the Internal Revenue Service. See also annuity.