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CEFR C1 — Advanced

Annuity

Definition

(formal) A type of financial investment where a person pays a lump sum of money in exchange for a series of regular payments, usually for the rest of their life, often used as a retirement income plan.

Example Sentences

1After retiring, she invested her savings in an annuity to ensure a steady income stream for the rest of her life.
2Does purchasing an annuity make sense for someone who is still in their 30s?
3The company offered its employees the option to purchase an annuity as part of their retirement package.
4It is essential to carefully review the terms of an annuity before investing, as they can be complex and inflexible.
5Some financial advisors recommend diversifying one's retirement portfolio by including an annuity alongside other investments.

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