An annuity is best described as:

An annuity is best described as a series of equal regular deposits or payments made over a specified period of time. This concept is key in finance and retirement planning, as it helps individuals manage their cash flow by providing a predictable income stream. Each deposit is typically of the same amount and is made at regular intervals, such as monthly or annually. This uniformity allows for easier calculations of future values and interest accrued over time.

When it comes to financial planning, annuities can be an effective way to save for specific goals, such as retirement, as they help in structuring savings into manageable and consistent contributions. Knowing the structure of an annuity can also aid in understanding various financial products and investments that use this principle to provide returns or payouts.

Understanding that an annuity involves consistent, equal payments distinguishes it from a one-time deposit, which does not have the same time-based regularity; irregular deposits, which vary in amount and timing; or misconceptions regarding its use only for retirement, as annuities can serve various financial goals.