What factor determines the amount an annuitant receives from a variable annuity?

The amount an annuitant receives from a variable annuity is determined primarily by the market value variations of the securities backing it. Unlike fixed annuities, which provide guaranteed payments based on predetermined interest rates, variable annuities fluctuate in value based on the performance of the underlying investments, such as stocks and bonds. As the market value of these investments rises or falls, the payments made to the annuitant can increase or decrease correspondingly. Thus, the returns are tied directly to the investment performance, making this the key factor influencing the amount received.

Factors like the annuitant's age at the time of payout may impact the duration or structure of the payments but do not directly affect the variable amount that is contingent upon market performance. Similarly, while fixed interest rates may influence a different type of annuity, they do not apply to variable annuities where payments are not guaranteed. The term length of the annuity contract can dictate other aspects, such as when payments start or end, but the actual payout amount in a variable annuity is intrinsically linked to the market values of the underlying investments.