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

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!

Example Sentences

See Examples For:

annuity annuities

So say you spend $300,000 for a condo and $200,000 on an annuity.

From MarketWatch ● Aug. 19, 2026

At today’s rates, a single premium immediate annuity for a 71-year-old female would get you about $700 a month for every $100,000, according to the age tables at ImmediateAnnuities.com.

From MarketWatch ● Aug. 19, 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

Despite the small annuity, Bobby, to get by, had dinner almost every night at the Collins home and took advantage of lunch and dinner invitations from chess fans and admirers.

From "Endgame" by Frank Brady

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

It’s been widely recognized for years that people with longer life expectancies buy annuities.

From MarketWatch ● Jul. 2, 2026

I tend to support increased access to annuities as part of a prudently selected menu of investments.

From MarketWatch ● Jun. 26, 2026

In return the reservations were to be closed to the white buffalo hunters and the tribes were to be issued certain annuities and provided with farming implements, seeds, churches, and schools.

From Hermann Stieffel, Soldier Artist of the West by Edgar M. Howell

Related Words

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