annuity
Americannoun
-
annuities
plural
-
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.
-
the right to receive such an income, or the duty to make such a payment or payments.
noun
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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
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the right to receive or the duty to pay such a sum
Discover More
Many people's retirement funds are set up to be paid in annuities.
Other Word Forms
Derived Forms
Inflected Forms
Nouns
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
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!
Vocabulary lists containing annuity
This Week in Words: October 21- 27, 2018
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Personal Finance and Financial Literacy - High School
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Personal Finance and Financial Literacy - Middle School
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Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
See Examples For:
He branched into insurance, spotting how annuity savers’ years of steady premiums could be a good match for multigenerational investments in sports, fast food and technology.
From The Wall Street Journal ● Aug. 13, 2026
They make it even less-likely the winner would choose the annuity over the more popular but smaller upfront cash option.
From The Wall Street Journal ● Aug. 12, 2026
If a player from a participating U.S. lottery wins the jackpot, they may choose to receive the prize as an annuity, paid in 30 graduated payments over 29 years, or as a lump-sum payment.
From Los Angeles Times ● Aug. 11, 2026
I’ve been considering setting up an annuity to help supplement his income, with the goal of covering the cost of a Medicare supplement plan and providing him with a little additional monthly income.
From MarketWatch ● Aug. 6, 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
I have current and future annuities that now pay $40,000 a year, but will eventually pay another $12,000 in five years and another $12,000 in 10 years.
From MarketWatch ● Jul. 31, 2026
Unless your question specifically is about managing your job, what I need to know about are your sources of income: jobs, pensions, Social Security and annuities.
From MarketWatch ● Jul. 22, 2026
Today, insurers controlled by Apollo, KKR and other private-equity firms are big sellers of annuities, the retirement products that require upfront payments in exchange for income in the future.
From The Wall Street Journal ● Jul. 21, 2026
Lifetime annuities provide guaranteed income until the annuitant dies, and therefore “shield retirees from income uncertainty and the stress associated with market fluctuations,” the study said.
From MarketWatch ● Jul. 2, 2026
It was also provided that the sum of £300,000 was to be raised by public subscription, for which the contributors were to receive certain terminable annuities.
From Readings in Money and Banking Selected and Adapted by Chester Arthur Phillips
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
