A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related Brickyard terms
- PensionA retirement plan where your employer promises a set monthly payment for life, usually based on your salary and years worked.
- Immediate AnnuityAn annuity that begins paying you income right after you hand over a lump sum, often used at the start of retirement.
- Deferred AnnuityAn annuity that grows for years before payments begin, letting your money build up before you start drawing income.
- Lump-Sum DistributionTaking your entire retirement benefit as one large payment instead of receiving it as monthly income over time.
- Safe Withdrawal RateThe percentage of your savings you can spend each year with low risk of running out of money during retirement.
- Longevity RiskThe chance that you outlive your retirement savings because you live longer than your money was planned to last.
Turn this into a brick
Knowing what Annuity means is knowledge — the first half. A brick gets placed when you act on it.
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Plain-English education — not personalized legal, tax, or investment advice.