noun
annuity
uh-NOO-uh-tee/əˈnuːəti/
A fixed sum paid to someone at regular intervals as income.
The diagram shows an annuity providing regular payments to the couple.
Etymology
The year root reflects an annuity’s original meaning: a yearly allowance. The word later named an investment entitling its holder to annual payments, connecting that allowance with the modern income-paying contract.
In context
they were like given like I think an annuity a yearly annuity of eight thousand pounds which is pretty significant
More examples
- He used part of his savings to purchase an annuity.
- The contract specified when the annuity payments would begin.
- They compared an annuity with other sources of retirement income.
Forms
annuity · annuities
Similar words
- pension
- A pension is retirement income; an annuity is a stream of payments under a specified arrangement.
- installment
- An installment is one scheduled payment; an annuity is a continuing series of payments.