Annuity

Pronunciation

• IPA: /əˈn(j)uɪti/

Origin

From French annuité, from Medieval Latin annuitās, from Latin annuus ("annual").

Full definition of annuity

Noun

1. A specified income payable at stated intervals for a fixed or a contingent period, often for the recipient’s life, in consideration of a stipulated premium paid either in prior installment payments or in a single payment. For example, a retirement annuity paid to a public officer following his or her retirement.
2. The right to receive such an income.
3. The duty to make such a payment or payments.

Derived terms

• annuitant

Related terms

• perpetuity