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annuity| Contract where a lump sum is used to purchase regular income, usually made with an insurance company. |
| The amount of income paid depends on the annuity rates at the time the annuity is purchased. Annuity rates depend on factors such as the prevailing interest rates. The company paying the annuity retains the lump sum after the person purchasing the annuity dies, in return providing a fixed and regular payment for the duration of the purchaser's life. Annuities are a common method of paying pensions. Upon retirement an individual might purchase an annuity with a lump sum accumulated in his or her pension fund. The annuity may be deferred; when using an annuity for pension income, the recipient need not convert the lump sum into an annuity immediately upon retirement, waiting instead for the most favourable market conditions. |
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| ? Mentioned in | | ? References in periodicals archive |
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1814
actuary
Anglo - Irish relations
April 11
Beethoven, Ludwig van
Clare, John
Commons, House of
de Valera, Éamon
Halleck, Fitz-Greene
| Ireland, Republic of
Klopstock, Friedrich Gottlieb
Moivre, Abraham de
Monsigny, Pierre-Alexandre
Napoleonic Wars (1803–15)
O'Donnell, Peadar
Panama
Simpson, Thomas
Wordsworth, William
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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. |