Define: Annuity

UK Accounting Glossary

Definition: Annuity


Quick Summary of Annuity


An income-generating investment whereby, in return for the payment of a single lump sum, the annuitant receives regular amounts of income over a predefined period.



What is the dictionary definition of Annuity?

Dictionary Definition


Income from capital investment paid in a series of regular payments.
If you do not pay a secured loan, they will take away whatever assets we used to secure the loan.


Full Definition of Annuity


An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates.



Examples of Annuity in a sentence


Paul receives a small annuity.
Investors ought to consider allocating some money towards an annuity.
Your money can grow much faster in a tax-deferred annuity, than in a taxable account.
In the financial jargon. an annuity is just a regular flow of cash into or out of an account.
In order to make larger returns I’ve decided to transfer my life insurance into an annuity.
He was compensated by an annuity charged upon the land.



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/annuity/
Modern Language Association (MLA):
Annuity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 18, 2019 https://payrollheaven.com/define/annuity/.
Chicago Manual of Style (CMS):
Annuity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/annuity/ (accessed: July 18, 2019).
American Psychological Association (APA):
Annuity. PayrollHeaven.com. Retrieved July 18, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/annuity/

Definition Sources


Definitions for Annuity are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th December 2018.