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IELTS BNC: 17018 COCA: 12850

annuity

noun

an·​nu·​i·​ty ə-ˈnü-ə-tē How to pronounce annuity (audio)
-ˈnyü-
plural annuities
1
: a sum of money payable yearly or at other regular intervals
2
: the right to receive an annuity
3
: a contract or agreement providing for the payment of an annuity

Did you know?

This is a payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Under an annuity certain, a specified number of payments are made, after which the annuity stops. With a contingent annuity, each payment depends on the continuance of a given status; for example, a life annuity continues only as long as the recipient survives. Contingent annuities depend on shared risk. Everyone pays in until the annuity begins; some will live long enough to collect more than they have paid, while others will not live long enough to get back the money they invested.

Example Sentences

Part of her retirement income will come from an annuity. his grandfather's will provided him with an annuity of $5,000 a year to be used for school expenses
Recent Examples on the Web Arbor reaps fees for packaging those credits, and also keeps the lucrative servicing rights on the loans, yielding a steady, annuity-like stream of income. Shawn Tully, Fortune, 14 July 2022 One estimate on the statement will be for a single life annuity, which pays income to an individual. Nicole Goodkind, CNN, 21 June 2022 Because an annuity – even in a 401(k) – is still a contract with an insurance company. Amy Wagner And Steve Sprovach, The Enquirer, 23 Apr. 2022 An asset-annuity combo would use John’s assets in two ways. Jack Guttentag, Forbes, 17 June 2021 The plan will include which payout option to choose: An annuity option makes an initial annual payment followed by 29 annual payments. Medora Lee, USA TODAY, 27 July 2022 The annuity option makes an initial annual payment followed by 29 annual payments. Hannah Kirby, Journal Sentinel, 28 July 2022 Also realize that the $1.02 billion amount is for the annuity option, paid annually over 29 years. Scott Mcfetridge, Chicago Tribune, 27 July 2022 First, that's the amount for winners who take the annuity option, paid over 30 annual payments. CBS News, 26 July 2022 See More

Word History

Etymology

Middle English annuite, from Anglo-French annuité, from Medieval Latin annuitat-, annuitas, from Latin annuus yearly

First Known Use

15th century, in the meaning defined at sense 1

Time Traveler
The first known use of annuity was in the 15th century

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