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Difference Between a Pension and an Annuity
(Posted March 3, 2014)
Question 1107: What's the difference between a pension and an annuity?
Answer: A pension can be a gift of an employer for years of loyal and faithful service. An annuity is a retirement benefit earned by an employee who has met certain age and service requirements. The payment is guaranteed for the remainder of the workers life.
By law, the Railroad Retirement Board pays annuities.
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