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What is an annuity?

What is an annuity? Here are some definitions.

Noun
  1. 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.
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Robert relinquished his claim in return for Henry's territories in Normandy and a large annuity.
Ways to reform the annuity system have also been bandied about, such as allowing people to pass on some their pension pot to their descendants.
You put off buying an annuity, invest the money, and draw some of it off as a pension.
You can still take the traditional route and, having drawn down your 25 per cent tax free lump sum, simply invest in an annuity.
Hideo succeeded and was awarded the decoration and an annuity for carrying out his duty so well.
Until 1999, the only choice available to anyone retiring was an annuity, a fixed income for life.

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