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

Phillips owns one annuity from Clear Spring and multiple annuities from Gainbridge.

From The Wall Street Journal ● Oct. 12, 2026

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 best way to illustrate this equilibrium is with annuity payout rates — how much monthly income you could purchase with a given amount of money.

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

He prefers money as a concept and often uses terms such as annuity and fiduciary, words definitely not listed in the dictionary of mindless entertainment.

From "Me Talk Pretty One Day" by David Sedaris

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

From MarketWatch ● Oct. 15, 2026

People who bought annuities from Walter’s insurers are filing lawsuits over his insurers’ failure to disclose use of money.

From The Wall Street Journal ● Oct. 14, 2026

Indexed annuities guarantee no market losses, but insurers can periodically adjust the formula for returns.

From The Wall Street Journal ● Oct. 13, 2026

Lawsuits are piling up against Dodgers owner Mark Walter brought by senior citizens who bought annuities from his insurance companies.

From The Wall Street Journal ● Oct. 12, 2026

It is to you alone that the ministry owes its knowledge of the due rate of annuities for lives, according to different ages.

From Voltaire's Romances, Complete in One Volume by

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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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