Annuity

What is Annuity?

An annuity is a long-term agreement with an insurance provider that assures the worker a consistent income stream at a future time, usually after retirement.

Why Annuity Matters

Annuity plays a key role in an organization’s total compensation strategy. Getting this element right helps attract qualified candidates, retain top performers, and maintain internal pay equity.

HR and payroll teams should regularly benchmark against market data and review calculations to ensure accuracy, fairness, and compliance with applicable wage and hour laws.