lump sum
Lump sum (noun) means a single payment of the whole amount at once, rather than a series of smaller instalments. Example: “She took her pension as a lump sum instead of a monthly income.”
How to use lump sum
Learner’s notesIn plain EnglishAll the money paid in one go instead of bit by bit.
Neutral; standard in finance, employment and construction contracts.
The plural is "lump sums".
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Can you complete this real example?
She took her pension as a _____ instead of a monthly income.
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Frequently asked questions
What is the difference between a lump sum and an annuity?
A lump sum hands you the entire amount at once, leaving you responsible for investing or budgeting it. An annuity converts the money into a guaranteed income paid at regular intervals, usually for life. The lump sum offers control and flexibility; the annuity offers certainty.
Is a lump sum taxed differently?
It often is, because receiving a large amount in a single tax year can push you into a higher band. Many pension and redundancy schemes allow a portion to be taken tax-free, with rules varying by country — worth checking with a qualified adviser before deciding.
Is lump sum hyphenated?
As a noun it is two separate words: "he received a lump sum". Hyphenate it when it modifies a noun: "a lump-sum payment".
What is the meaning of lump sum?
"lump sum" (noun) means a single payment of the whole amount at once, rather than a series of smaller instalments.