What context can I use each word in?
Learn when and how to use these words with these examples!
annuity
Example
He decided to invest in an annuity to ensure a stable income during his retirement. [annuity: noun]
Example
She receives a monthly annuity payment from the insurance company. [annuity: adjective]
pension
Example
After working for 30 years, he started receiving a pension from his former employer. [pension: noun]
Example
The government provides a pension scheme to support retired citizens. [pension: noun]
Good things to know
Which word is more common?
Pension is more commonly used than annuity in everyday language, especially when referring to retirement income. Pension is a widely recognized term and is often associated with government or employer-provided retirement benefits. Annuity, on the other hand, is a more specialized term used in the context of financial planning and investment.
What’s the difference in the tone of formality between annuity and pension?
Both annuity and pension can be used in formal and informal contexts. However, annuity is more commonly used in formal settings, such as financial discussions or legal documents, while pension is versatile and can be used in both formal and informal situations.
