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Definition of annuity

annuity

/əˈnjuː.ə.ti/
an · nu · i · ty
Plural:annuities
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annuity Lexical Profile

annuity Game Scores & Validity

• noun

1

A fixed sum of money paid to someone each year or at regular intervals, typically for the rest of their life.

Example

"Upon retiring, she invested a portion of her savings into a lifetime annuity to guarantee a steady monthly income."

2

A financial investment or insurance contract that entitles the investor to a series of equal periodic payments in exchange for an initial lump-sum or installment contribution.

Example

"The financial advisor explained the tax advantages of purchasing a deferred annuity before age sixty."

Synonyms
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Antonyms
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• Rhymes for annuity

• Nearby Words

annualize
annually
annuitant
annuity
annul
annulated tree boa
annulment

Word Origin & Etymology

Borrowed in the late Middle Ages from Anglo-Norman and Old French annuite, from Medieval Latin annuitas, derived from Latin annuus ('yearly'), from annus ('year').

Cite this Entry

Wordmom. (2026). Definition of Annuity. In Wordmom Dictionary. Retrieved Nov 5, 2026, from https://wordmom.com/dictionary/annuity
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