Meaning & Definition of word "Annuity"
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Annuity
/əˈnjuː.ɪ.ti/
noun:
- 1. A fixed sum of money paid to someone each year, typically for the rest of their life, in exchange for a capital investment.
- Example: He invested in an annuity to ensure a steady income during retirement.
- 2. A series of payments made at equal intervals.
- Example: The lottery winner chose to receive their winnings as an annuity instead of a lump sum.
- 3. A financial product sold by financial institutions that provides a series of payments at specified intervals.
- Example: Many people purchase an annuity as a way to manage their retirement savings.
Etymology
Derived from the Latin 'annuitas', from 'annus', meaning year.
Common Phrases and Expressions
life annuity:
An annuity that provides payments for the lifetime of the annuitant.
fixed annuity:
An annuity that guarantees a fixed payment amount.
variable annuity:
An annuity where payments vary based on investment performance.
Related Words
pension:
A regular payment made to individuals after retirement.
investment:
An asset or item acquired for the purpose of generating income.
retirement:
The period of life after leaving one's job and ceasing to work.
Slang Meanings of annuity
Meaning: Money machine
Example Sentence: She referred to her annuity as her money machine, bringing in cash every month.
Meaning: Golden egg
Example Sentence: He called his annuity his golden egg that would provide for him in his later years.