annuity
Annuity (noun) means a fixed sum of money paid to someone at regular intervals, often for the rest of their life, usually as part of a retirement or investment plan. Example: “He used part of his pension to buy an annuity that pays him monthly.”
How to use annuity
Learner’s notesIn plain EnglishA financial product that pays out a fixed amount regularly, often used for retirement income.
Word forms
- Plural
- annuities
Fill the gap
Can you complete this real example?
He used part of his pension to buy an _____ that pays him monthly.
Etymology
From French annuité, from Medieval Latin annuitas, based on Latin annuus, "yearly."