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annuity |
Also found in: Legal, Financial, Encyclopedia, Wikipedia, Hutchinson | 0.02 sec. |
annuity [əˈnjuːɪtɪ] n pl -ties 1. (Economics, Accounting & Finance / Banking & Finance) a fixed sum payable at specified intervals, esp annually, over a period, such as the recipient's life, or in perpetuity, in return for a premium paid either in instalments or in a single payment 2. (Economics, Accounting & Finance / Banking & Finance) the right to receive or the duty to pay such a sum [from French annuité, from Medieval Latin annuitās, from Latin annuus annual] annuity an investment that bears a fixed return yearly, for a fixed period or for the life of the recipient. See also: Finance
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| Among its major provisions, the bill would provide safe harbor from age-discrimination suits for employers that transition to so-called "hybrid" cash balance or DB/k plans, which combine annuitized defined-benefit payouts with 401(k) savings and investment features. In addition to annuitized payments to a beneficiary for life, annuities can also provide either annuitized payments for a limited number of years, or a lump-sum payment to the beneficiary. Researchers have taken a wide variety of approaches to examine the issue, including measuring changes in household consumption at the time of retirement, calculating the annuitized value of existing wealth, comparing the wealth accumulation patterns of current and previous generations, and comparing the results of simulation models of optimal wealth accumulation with households' actual saving behavior. |
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