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:’
    • ‘The money raised is used to buy an annuity, which then pays out a monthly income.’
    • ‘This money is used to buy an annuity, which provides a regular income until you die.’
    • ‘She could buy an annuity, a fixed income for life, or she could opt for a combination of ARFs and annuities.’
    • ‘An annuity guarantees a fixed income for life but is dependent on interest rates at the time of retirement.’
    • ‘What about state pensioners, those who have to rely on their savings (unfairly taxed) and people on fixed incomes such as annuities?’
    • ‘An annuity, whereby the pensioner buys an income with a lump sum, can vary as well.’
    • ‘Low rates depress the return retirees can get from most traditional retirement vehicles, including fixed annuities, as well as bonds and certificates of deposit.’
    • ‘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.’
    • ‘Previously, if investors wanted to reinvest the bulk of their savings, they were compelled to put the money into an annuity.’
    • ‘A tax-deferred annuity can have a fixed rate, or it can be a variable product with sub-accounts.’
    • ‘If they want to save, they can do so - and make the decision nearer retirement whether to blow the money or buy an annuity.’
    • ‘At retirement, savers can opt for a fixed or variable-rate annuity.’
    • ‘Until 1999, the only choice available to anyone retiring was an annuity, a fixed income for life.’
    • ‘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.’
    • ‘Unlike deferred annuities, which people use to save for retirement, income annuities are for parceling out money already accumulated.’
    • ‘The annuity pays you a guaranteed income for the rest of your life.’
    • ‘It stated that the funds were to be used to secure the Retirement Benefits, which were an annuity and a lump sum payment.’
    • ‘When you take your tax-free lump sum you usually have to buy an annuity with the rest of your fund.’
    • ‘Fixed annuities usually charge about $30 a year in administrative fees.’
    payment, pocket money, sum of money, remittance, contribution, consideration, handout, grant, subsidy, maintenance, financial support, subsistence, benefit, stipend, pension, annuity, 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’
      • ‘The investment choices for QTPs are usually limited to mutual fund or annuities.’
      • ‘Aside from the risks, equity-linked annuities suffer from the lack of portability that all annuities, as insurance products, possess.’
      • ‘For the first time buyer this choice will be between an annuity mortgage and an endowment mortgage.’
      • ‘For people absolutely disinterested in managing their own finances, annuities offered a simple menu.’
      • ‘You can also defer your taxes by investing in annuities and IRA accounts.’
      • ‘At the moment there are comparative tables for eight financial products including mortgages, stakeholder pensions, annuities and unit trust ISAs.’
      • ‘Another new exemption is income earned in Singapore after Jan 1 this year from investments in financial products like unit trusts, bonds and annuities.’
      • ‘On the free market, anyone who wishes to invest in an insurance annuity or in stocks or real estate may do so.’
      • ‘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.’
      • ‘The scandal is also enmeshing insurance companies selling variable annuities, policies that let investors pay their premiums to mutual funds.’
      • ‘In many respects, the variable annuity sounds like a mutual fund, but it has key differences.’
      • ‘When you use the amortization or annuity method, you must factor in an annual interest rate.’
      • ‘In addition to offering a safe haven for initial investments, principal-protected annuities may also allow investors to lock in their gains.’
      • ‘Other types of non-probate assets include payable-on-death accounts, joint accounts held with rights of survivorship, life insurance and annuities.’
      • ‘She says the little money she has left is in annuities at an insurance company.’
      • ‘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.’
      • ‘Individuals who select ARFs are making a choice between an annuity and an investment fund.’
      • ‘For some investors, an annuity can be an appropriate part of their financial plan if utilized properly.’
      • ‘ING offers services like retirement and financial plans, annuities, insurance, mortgages and asset management.’
      • ‘A plan is under consideration to offer term life insurance, fixed annuities, and title insurance for mortgage holders.’

Origin

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

Pronunciation:

annuity

/əˈnjuːɪti/