annuity Hear it!

annuity Definition

an·nu·ity (ə no̵̅o̅′ə tē, -nyo̵̅o̅′-)

noun pl. -·ties

  1. a payment of a fixed sum of money at regular intervals of time, esp. yearly
  2. an investment yielding periodic payments during the annuitant's lifetime, for a stated number of years, or in perpetuity

Etymology: ME & OFr annuite < ML annuitas < L annuus, annual < annus: see annual

annuity Finance Definition

A financial instrument that pays out the investor’s earnings on a regular, periodic basis for a set amount of time. Annuities typically are used to provide funds for retirement. Annuities may be paid for the duration of a person’s life or may be set for a certain period of time. Annuities are tax-deferred, so the earnings from investments in these accounts grow without tax liability until the benefits are paid out.
annuity Law Definition

n

A fixed sum paid out at regular intervals for a certain period of time and subject to limitations set by the grantor. For example, a person may be entitled to fixed and periodic payments for the rest of his life once he reaches a certain age. See also life estate and trust.
annuity Usage Examples

Converse of object

  • purchase: Do I have to purchase an annuity at age 75?
  • buy: You have a choice Apart from anything else, buying an annuity is the biggest single purchase many of us will make.

Adjective modifier

  • deferred: The fund could then - acting as a whole - negotiate the purchase of deferred annuities with providers.
  • impaired: However, with an enhanced or impaired life annuity the worse the medical conditions the higher will be the income paid to an annuitant.
  • cent.: It is endowed with £ 100 three per cent. reduced Annuities, purchased in 1797 with money given by several benefactors.
  • terminable: The other possibility was to buy off the Anglo-Irish landlords at public expense by means of a Treasury advance repayable by terminable annuities.
  • guaranteed: Also check whether your current company offer a guaranteed annuity.
  • unit-linked: With-profits, unitised with-profits, unit-linked, annuities in payment, or other policies issued by Pearl Assurance plc are not affected.

Modifies a noun

  • ape: Fixed index annuity APE sales of £ 13 million were down 7 per cent on the same period of 2005.
  • Co: From expensive emergency annuity co ing insurance life years ago is.
  • rate: Over the same period annuity rates have worsened by about 21 % .
  • contract: The annuity contract or trust scheme must have been approved by the Inland Revenue.
  • purchase: This allows for a deferral of annuity purchase past the age of 75.
  • taxation: This annuity taxation can be compared to a compulsory purchase annuity for a pension where all the income is taxed as earned income.

Noun used with modifier

  • with-profits: We also review the amount of your income payments each year at the anniversary of the date your with-profits annuity policy started.
  • retirement: Last day to make retirement annuity payments to carry back to previous tax year.
  • with-profit: He departed as 50,000 stunned with-profit annuity holders had just been told their pensions would be slashed by up to 30 per cent.
  • lifetime: In lieu of the original lifetime tenancy granted the home income plan provider will provide you with a lifetime annuity.
  • pension: A pension annuity is used to convert capital within a pension plan into a regular guaranteed lifetime income.
  • profit: One way of having a higher income is to initially select a With Profits annuity.
annuity Quotes

Buyan annuity cheap, and make your life interesting to yourself and everybody else that watches the speculation. 268

—Dickens, CharlesJohn Huffam