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Translate files Annuity
/əˈnjuː.ɪ.ti/
Meaning & Definition
noun
A fixed sum of money paid to someone each year, typically for the rest of their life, in exchange for a capital investment.
He invested in an annuity to ensure a steady income during retirement.
A series of payments made at equal intervals.
The lottery winner chose to receive their winnings as an annuity instead of a lump sum.
A financial product sold by financial institutions that provides a series of payments at specified intervals.
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
Slang Meanings
Money machine
She referred to her annuity as her money machine, bringing in cash every month.
Golden egg
He called his annuity his golden egg that would provide for him in his later years.