What Are Pensions And Annuities? 
There can be a little leeway in the definitions of a pension , but heres mine . The traditional quailed pension of the past was a basic defined benefit plan investing in the market or a more conservative portfolio of fixed instruments paying a fixed ongoing payment either for the life of the pensioner or a fixed time certain period . The benefits are taxed as ordinary income . A tax deferred annuity is a non-qualified insurance product that can pay as similarly stated above , except the distribution of basis is tax free . 