What does annuity mean?
A fixed sum of money paid at regular intervals, typically for a person's lifetime or for a set period of time, in exchange for a lump sum of money or other assets. An annuity is often used as a means of providing a steady income in retirement.
Example
"The couple invested in an annuity to ensure a steady income in their old age."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.