Simple Definition of annuity

from our Learner's Dictionary

annuity

noun

əˈnuːəti How to pronounce annuity (audio)
British əˈnjuːəti
plural annuities
1
: a fixed amount of money that is paid to someone each year
2
: an insurance policy or an investment that pays someone a fixed amount of money each year
Part of her retirement income will come from an annuity.

Cite this Entry

“Annuity.” Merriam-Webster.com Simple Definition, Merriam-Webster, https://www.merriam-webster.com/simple/annuity. Accessed 15 Jun. 2026.

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