# annuity

/əˈnuəti/ (US) · /ɐnjˈuːɪti/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/annuity
Updated: 2026-05-04

## Definition

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.

For teachers: 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.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.