annuity

American  

[uh-noo-i-tee, uh-nyoo-] / əˈnu ɪ ti, əˈnju- /

noun

• annuities
  plural

1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient's life, in consideration of a stipulated premium paid either in prior installment payments or in a single payment.

2. the right to receive such an income, or the duty to make such a payment or payments.

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annuity British  

/ əˈnjuːɪtɪ /

noun

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

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annuity Cultural  

1. A sum of money payable yearly or at regular intervals.

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Discover More

Many people's retirement funds are set up to be paid in annuities.

Other Word Forms

Derived Forms

• superannuity
  noun

Inflected Forms

Nouns

• annuities
  plural

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Etymology

Origin of annuity

First recorded in 1400–50; late Middle English, from Anglo-French annuité, annualté, from Medieval Latin annuitās, equivalent to Latin annu(us) “yearly,” derivative of annus “year” + -itās -ity

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Explanation

An annuity is money that comes from an investment and is paid out regularly over a fixed period of time. You can buy an insurance policy that is an annuity, or you can choose an annuity as one of your retirement fund options. The noun annuity is from the Latin word annus, meaning "year." Indeed, annuities typically pay out on a year basis, although other terms are possible. If you win a large amount of money in the lottery, you can usually choose to take a lump-sum payment or smaller payments paid every year over some term, like 20 or 25 years. Figuring out which payment plan is best for you would be a nice problem to have!

Example Sentences

See Examples For:

annuity annuities

Educational materials for an indexed annuity sold by Delaware Life, for instance, show a premium of $100,000 growing to $2.7 million over the next 21 years.

From The Wall Street Journal ● Oct. 11, 2026

The 3.7% annualized rate she earned over the 12-year life of her annuity handily beat the 1.9% she would have gotten from Treasurys.

From The Wall Street Journal ● Oct. 11, 2026

But it simplifies comparisons to translate complex portfolios into the annuity income each could support.

From MarketWatch ● Oct. 1, 2026

That yield currently is higher than it’s been in years, and so is the monthly income that could be purchased with such an annuity.

From MarketWatch ● Oct. 1, 2026

Mollie’s parents were warned that if they didn’t comply, the government would withhold its annuity payments, leaving the family starving.

From "Killers of the Flower Moon" by David Grann

We have fixed annuities that bring in $22,000 a year.

From MarketWatch ● Oct. 15, 2026

A suit filed Monday is at least the third to allege Walter and his insurers sold annuities based on misrepresentations and false promises.

From The Wall Street Journal ● Oct. 12, 2026

Private-asset managers have used indexed annuities to gather household savings and power the rise of their private lending business.

From The Wall Street Journal ● Oct. 11, 2026

Still, consumer advocates say indexed annuities can be a magnet for misleading sales pitches.

From The Wall Street Journal ● Oct. 11, 2026

Like other tribes, they gradually ceded their lands to the Government, receiving in return annuities and goods, until in 1851 all but a few bands, retaining but moderate reservations, had removed west of the Mississippi.

From Descriptive Catalogue of Photographs of North American Indians by W. H. Jackson

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Related Words

• amount
• award
• cash
• deposit
• disbursement
• fee
• outlay
• pension
• premium
• refund
• reimbursement
• remittance
• reparation
• repayment
• restitution
• return
• reward
• royalty
• salary
• settlement

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