retirement
annuity
A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream during retirement.
Example
"She purchased an annuity that would pay her $2,000 per month for the rest of her life."
💡 Memory Tip
ANNU-ity — annu sounds like 'annual.' You get annual (or regular) payments.
Etymology
From Latin 'annuitas' from 'annus' meaning year — payments made annually.
Common Misspellings
annutiyannuietyanuityannuatyannuiety
Related Terms
See Also
pensionretirementinsurance