An annuity is an investment or insurance policy that pays someone a fixed sum of money each year.
[business]
annuity in British English
(əˈnjuːɪtɪ)
nounWord forms: plural-ties
1.
a fixed sum payable at specified intervals, esp annually, over a period, such as the recipient's life, or in perpetuity, in return for a premium paid either in instalments or in a single payment
2.
the right to receive or the duty to pay such a sum
Word origin
C15: from French annuité, from Medieval Latin annuitās, from Latin annuusannual
annuity in American English
(əˈnuəti; əˈnjuəti)
nounWord forms: pluralanˈnuities
1.
a payment of a fixed sum of money at regular intervals of time, esp. yearly
2.
an investment yielding periodic payments during the annuitant's lifetime, for a stated number of years, or in perpetuity
Word origin
ME & OFr annuite < ML annuitas < L annuus, annual < annus: see annual
annuity in Finance
(ənuɪti)
Word forms: (plural) annuities
noun
(Finance: Investment, Retirement)
An annuity is a life insurance contract that is usually sold as a retirement investment.
An annuity is a tax-deferred retirement savings plan that resembles an individual retirementaccount.
If they sell their rental property, they may want to purchase an annuity with some of the funds in order to replace the fixed income they were receiving inrent.
An annuity is a life insurance contract that is usually sold as a retirement investment.
annuity in Insurance
(ənuɪti)
Word forms: (plural) annuities
noun
(Insurance: Life insurance, Pensions)
An annuity is a contract of insurance to provide an income to the policyholder for a set period of time.
Deferred annuities allow assets to grow tax-deferred over time before being converted to payments tothe annuitant.
The fixed annuity guarantees the principal and provides a lifetime income after retirement.
An annuity is a contract of insurance to provide an income to the policyholder for a set periodof time.
annuitant, annuitize, annuity rate, deferred annuity, immediate annuity, joint life annuity, single life annuity, standard annuity
Examples of 'annuity' in a sentence
annuity
Most people will also benefit from a new personal savings allowance, which can be set against interest from savings, bonds and life annuities.
Times, Sunday Times (2016)
You have scope to buy more income through a purchased life annuity.
Times, Sunday Times (2012)
Is an annuity still right for me?
Times, Sunday Times (2014)
Your delayed annuity payments have now been processed and you should receive them soon.
Times, Sunday Times (2008)
About half a million people buy annuities each year as they retire.
Times, Sunday Times (2013)
What are the alternatives to buying a standard annuity now?
Times, Sunday Times (2010)
Property is a much more risky investment than an annuity.
Times, Sunday Times (2015)
Previously they could take out a small sum and be paid an annuity for life.
The Sun (2015)
About a quarter of those who took out annuities last year bought enhanced ones.
Times, Sunday Times (2014)
People who could have benefited from a joint life annuity are left destitute when their spouse dies.
Times, Sunday Times (2013)
The figure was far better than he would have received with a standard annuity because of his health problems.
Times, Sunday Times (2015)
Its success has been based on the premise that people entering retirement with reduced life expectancy should receive higher annuity payments.
Times, Sunday Times (2013)
They say an annuity would pay me something like 2 per year.
Times, Sunday Times (2013)
Then, you need to consider whether an annuity is the right thing at all.
Times, Sunday Times (2009)
With a purchased life annuity, investors receive an income for life.
Times, Sunday Times (2007)
Is there a way to access the 16,000 without paying annuity fees?
Times, Sunday Times (2012)
Once an annuity is in payment, it cannot be changed.
Times, Sunday Times (2010)
In a further twist, some annuity providers are running panels on behalf of famous brands.
Times, Sunday Times (2013)
At the moment, men receive higher annuity payments than women of the same age.
Times, Sunday Times (2011)
Has annuity that pays 85 a month.
Times, Sunday Times (2008)
Crucially, check you are not giving up any valuable guaranteed annuity payments by moving.
Times, Sunday Times (2013)
This year, our annuities seem finally to have stabilised.
Times, Sunday Times (2014)
It can be, but you will have to work hard to beat an annuity's predictable returns.
Times, Sunday Times (2010)
They aim to provide a'third way' between the security of annuities and the investment potential of income drawdown.
Times, Sunday Times (2009)
All related terms of 'annuity'
annuity bond
a fixed-rate bond that pays out the same amount of cash every year over its lifetime
annuity rate
An annuity rate is used to calculate the amount of income that will be paid, following investment of a lump sum in an annuity.
bank annuity
an irredeemable British government security carrying an annual interest rate of two and a half or four per cent
life annuity
an annuity that pays out regularly for the life of its owner
annuity income
A person's or organization's income is the money that they earn or receive, as opposed to the money that they have to spend or pay out.
annuity payment
a payment that the investor receives at regular intervals from an annuity
deferred annuity
an annuity that commences not less than one year after the final purchase premium
immediate annuity
an annuity that starts less than a year after its purchase
standard annuity
A standard annuity is a retirement investment insurance contract that pays a regular income in return for a lump sum payment.
variable annuity
an annuity in which the premiums are invested chiefly in common stocks or other securities , the annuitant receiving payments based on the yield of the investments instead of in fixed amounts
joint life annuity
A joint life annuity is a life insurance policy that pays a benefit that continues throughout the joint lifetime of two people until one of them dies.
single life annuity
A single life annuity is an annuity where only one life is covered .