annuity Definition
- 1a fixed sum of money paid to someone each year, typically for the rest of their life
- 2a form of insurance or investment entitling the investor to a series of annual sums
Using annuity: Examples
Take a moment to familiarize yourself with how "annuity" can be used in various situations through the following examples!
Example
He receives an annuity of $10,000 per year from his former employer.
Example
The lottery winner chose to receive her winnings as an annuity over 20 years.
Example
An annuity can provide a steady stream of income during retirement.
annuity Synonyms and Antonyms
Phrases with annuity
Example
She used her retirement savings to purchase an immediate annuity.
Example
He invested in a fixed annuity to ensure a steady stream of income during retirement.
an annuity that pays out a variable amount of money based on the performance of the underlying investments
Example
She decided to invest in a variable annuity to potentially earn higher returns.
Origins of annuity
from Latin 'annus', meaning 'year'
Summary: annuity in Brief
An 'annuity' [əˈnjuːɪti] is a fixed sum of money paid to someone each year, typically for the rest of their life. It can also refer to a form of insurance or investment that entitles the investor to a series of annual sums. Examples include receiving an annuity from a former employer or choosing to receive lottery winnings as an annuity. Types of annuities include immediate, fixed, and variable annuities.
