- noun a person’s estimate of his or her income over a considerable period of time in the future
- (written as Permanent Income)The regular annuity for an individual or organization whose present value equals the wealth of the individual or organization. It is used in economics as an alternative to current income on the grounds that people are more likely to consume, save, etc. in relation to permanent income than transitory income, which may have substantial ups and downs. The inventor of the concept was Friedman (1957).