Definition of annuity in English:

annuity

noun

  • 1A fixed sum of money paid to someone each year, typically for the rest of their life.

    ‘he left her an annuity of £1,000 in his will’
    • ‘A tax-deferred annuity can have a fixed rate, or it can be a variable product with sub-accounts.’
    • ‘The annuity pays you a guaranteed income for the rest of your life.’
    • ‘Low rates depress the return retirees can get from most traditional retirement vehicles, including fixed annuities, as well as bonds and certificates of deposit.’
    • ‘She could buy an annuity, a fixed income for life, or she could opt for a combination of ARFs and annuities.’
    • ‘Unlike deferred annuities, which people use to save for retirement, income annuities are for parceling out money already accumulated.’
    • ‘What about state pensioners, those who have to rely on their savings (unfairly taxed) and people on fixed incomes such as annuities?’
    • ‘This money is used to buy an annuity, which provides a regular income until you die.’
    • ‘Fixed annuities usually charge about $30 a year in administrative fees.’
    • ‘Until 1999, the only choice available to anyone retiring was an annuity, a fixed income for life.’
    • ‘Fixed annuities help stabilize income from investments, and are most commonly used by people who are not fully participating in the workforce, are about to retire or have retired.’
    • ‘An annuity, whereby the pensioner buys an income with a lump sum, can vary as well.’
    • ‘At retirement, savers can opt for a fixed or variable-rate annuity.’
    • ‘Previously, if investors wanted to reinvest the bulk of their savings, they were compelled to put the money into an annuity.’
    • ‘If they want to save, they can do so - and make the decision nearer retirement whether to blow the money or buy an annuity.’
    • ‘An annuity guarantees a fixed income for life but is dependent on interest rates at the time of retirement.’
    • ‘When you take your tax-free lump sum you usually have to buy an annuity with the rest of your fund.’
    • ‘The money raised is used to buy an annuity, which then pays out a monthly income.’
    • ‘Equitable is expected to first devise a draft proposal, designed to buy out the expensive annuity guarantees that the society can no longer afford.’
    • ‘The claimant could often convert the lump sum into an annuity, but this would take no account of a deterioration in health, for example.’
    • ‘It stated that the funds were to be used to secure the Retirement Benefits, which were an annuity and a lump sum payment.’
    payment, pocket money, sum of money, remittance, contribution, consideration, handout, grant, subsidy, maintenance, financial support, subsistence, benefit, stipend, pension, keep, upkeep, expenses
    View synonyms
    1. 1.1 A form of insurance or investment entitling the investor to a series of annual sums.
      ‘loans secured on an older person's home which are used to purchase a life annuity’
      as modifier ‘an annuity scheme’
      • ‘For the first time buyer this choice will be between an annuity mortgage and an endowment mortgage.’
      • ‘In many respects, the variable annuity sounds like a mutual fund, but it has key differences.’
      • ‘She says the little money she has left is in annuities at an insurance company.’
      • ‘In addition to offering a safe haven for initial investments, principal-protected annuities may also allow investors to lock in their gains.’
      • ‘Another new exemption is income earned in Singapore after Jan 1 this year from investments in financial products like unit trusts, bonds and annuities.’
      • ‘Other types of non-probate assets include payable-on-death accounts, joint accounts held with rights of survivorship, life insurance and annuities.’
      • ‘You can also defer your taxes by investing in annuities and IRA accounts.’
      • ‘But instead of designer brands, what's for sale is an array of home loans, mutual funds, insurance, annuities, brokerage services, and plain old savings accounts.’
      • ‘At the moment there are comparative tables for eight financial products including mortgages, stakeholder pensions, annuities and unit trust ISAs.’
      • ‘Individuals who select ARFs are making a choice between an annuity and an investment fund.’
      • ‘The scandal is also enmeshing insurance companies selling variable annuities, policies that let investors pay their premiums to mutual funds.’
      • ‘As for retirees, AARP warns against investing in variable annuities that can lose all their value because they have less time to recoup any losses caused by market swings.’
      • ‘When you use the amortization or annuity method, you must factor in an annual interest rate.’
      • ‘Aside from the risks, equity-linked annuities suffer from the lack of portability that all annuities, as insurance products, possess.’
      • ‘ING offers services like retirement and financial plans, annuities, insurance, mortgages and asset management.’
      • ‘The investment choices for QTPs are usually limited to mutual fund or annuities.’
      • ‘For people absolutely disinterested in managing their own finances, annuities offered a simple menu.’
      • ‘A plan is under consideration to offer term life insurance, fixed annuities, and title insurance for mortgage holders.’
      • ‘For some investors, an annuity can be an appropriate part of their financial plan if utilized properly.’
      • ‘On the free market, anyone who wishes to invest in an insurance annuity or in stocks or real estate may do so.’

Origin

Late Middle English: from French annuité, from medieval Latin annuitas, from Latin annuus ‘yearly’, from annus ‘year’.

Pronunciation

annuity

/əˈnjuːɪti/