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annuity

Line breaks: an¦nu|ity
Pronunciation: /əˈnjuːɪti
 
/

Definition of annuity in English:

noun (plural annuities)

1A fixed sum of money paid to someone each year, typically for the rest of their life: he left her an annuity of £1,000 in his will:
More example sentences
  • Until 1999, the only choice available to anyone retiring was an annuity, a fixed income for life.
  • Previously, if investors wanted to reinvest the bulk of their savings, they were compelled to put the money into an annuity.
  • Equitable is expected to first devise a draft proposal, designed to buy out the expensive annuity guarantees that the society can no longer afford.
1.1A form of insurance or investment entitling the investor to a series of annual sums: loans secured on an older person’s home which are used to purchase a life annuity [as modifier]: an annuity scheme
More example sentences
  • The scandal is also enmeshing insurance companies selling variable annuities, policies that let investors pay their premiums to mutual funds.
  • When you use the amortization or annuity method, you must factor in an annual interest rate.
  • She says the little money she has left is in annuities at an insurance company.

Origin

late Middle English: from French annuité, from medieval Latin annuitas, from Latin annuus 'yearly', from annus 'year'.

Derivatives

annuitize

1
(also annuitise) verb
Example sentences
  • By annuitizing income, Social Security is forcing people to take something they do not need, rather than giving them something that the market fails to provide.
  • Once your contract is annuitized, part of each payment (from a fixed annuity) is considered a partial return of the basis (your contribution) and part is taxable income using an exclusion ratio.
  • Only about 1% of variable annuities are ever annuitized.

Definition of annuity in:

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