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

A right to receive amounts of money regularly over a certain fixed period, in perpetuity, or, especially, over the remaining life or lives of one or more beneficiaries.


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

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.


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
Modern Language Association (MLA):
Annuity. Payroll & Accounting Heaven Ltd. November 15, 2019
Chicago Manual of Style (CMS):
Annuity. Payroll & Accounting Heaven Ltd. (accessed: November 15, 2019).
American Psychological Association (APA):
Annuity. Retrieved November 15, 2019, from website:

Definition Sources

Definitions for Annuity are sourced/syndicated from:

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