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User_gary Posted 15 years ago
Vocabulary

Difference between annuity and pension

I just come by the word "annuity" and as per dictionary it seems it is just another word for "pension", but now I begin to wonder what the differences are between them.
  

Top answer

Hi, Generally speaking, here's the broad idea. annuity - You pay a lump sum, to buy an anuual income for life. ipension - You earn an annual income for life by working for a number of years.

— Clive

  • Hi, Generally speaking, here's the broad idea.
  • annuity - You pay a lump sum, to buy an anuual income for life.
  • ipension - You earn an annual income for life by working for a number of years.
  • There are many other details I haven't mentioned.
  • Clive
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3 Answers
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Hi,

Generally speaking, here's the broad idea.

annuity - You pay a lump sum, to buy an anuual income for life.

ipension - You earn an annual income for life by working for a number of years.
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Thank you Clive.
But I hear Company pays both Annuity and Pension. I wonder how it is so. I don't think employee pays company in a lump sum to get annuity later.
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Hi,

I've never heard of a company that pays retired employees an annuity.

Clive
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