annuity

UK: əˈnjuːɪti | US: əˈnuːɪti

Definition
  1. n. a fixed sum of money paid to someone regularly, typically for the rest of their life

  2. n. a contract or investment providing such payments

Structure
annu <year>ity <noun suffix>
Etymology

annuity = annu<year> + ity<noun suffix>

  • annu (from Latin annus, meaning "year")
  • ity (noun-forming suffix indicating state or condition, from Latin -itas)

Etymology Origin:
The word annuity traces back to Latin annuitas, derived from annus (year). It originally referred to yearly payments, reflecting its financial use as a periodic income stream. Over time, it broadened to include any regular payment schedule, regardless of frequency, while retaining its core association with time-based disbursements.

Examples
  1. She receives a monthly annuity from her pension plan.

  2. The insurance company offers a fixed annuity for retirees.

  3. Annuities provide financial stability during retirement.

  4. He invested in an annuity to secure his future income.

  5. The contract guarantees an annuity for 20 years.