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annuity |
Also found in: Legal, Financial, Encyclopedia, Wikipedia, Hutchinson | 0.01 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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| The contract's guaranteed minimum income benefit protects the contract value that will be used to determine payouts if the owner annuitizes. If the retiree annuitizes the lumpsum payment, it should be counted as "private pensions or annuities" in the CPS. |
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