Definition

A financial product that provides regular payments over a period of time, often used for retirement income or investment returns.

Example

She decided to invest in an annuity to secure her financial future during retirement.

Conversation

Have you ever thought about getting an annuity for retirement?

Not really, what is it exactly?

It's a financial product that gives you fixed payments over time, usually for life.

That sounds interesting; I might need to look into an annuity after hearing that.

Synonyms & Antonyms

Root Explanation

Annuity → It is formed from "annuus" (from Latin, meaning yearly) and the suffix "-ity" (meaning the state or condition of). An annuity refers to a financial product that provides payments made at regular intervals, typically yearly.

Memory Tip

Think of 'yearly' ('annuus') payments to remember that an annuity is a financial arrangement that pays out money over time.

Visually Confused Words