Word
annuity
Phoneticsan·nu·ity
US/əˈnuəti/
UK/ɐnjˈuːɪti/
Definition
n. a fixed sum of money paid to you regularly, usually for the rest of your life. You often receive this from a pension or insurance plan.
n. a financial product or contract that provides a guaranteed income stream, typically for a specified period or for life. Commonly associated with retirement planning and insurance.
Examples
“She receives a monthly annuity from her pension.”
“After retiring, he bought an annuity to ensure a steady income for his later years.”
“The actuarial calculations behind the annuity guarantee a lifetime income, shielding the retiree from the risk of outliving their savings.”
Examples
simple
“She receives a monthly annuity from her pension.”
contextual
“After retiring, he bought an annuity to ensure a steady income for his later years.”
complex
“The actuarial calculations behind the annuity guarantee a lifetime income, shielding the retiree from the risk of outliving their savings.”
Real-World Examples
“However, the market could be more favourable to anyone currently buying an annuity - a product from an insurance company that gives a retirement income for the rest of their life, bought only once.” Etymology
From French annuité, from Medieval Latin annuitās, from Latin annuus (“annual”). Cf. annuality.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Scan code
englishreference.com/q/annuity