Human: What is the difference between an annuity and a pension? Assistant: 
An annuity is a contract that provides periodic payments to an individual in exchange for a lump sum payment. A pension, on the other hand, is typically a retirement benefit paid by employers or governments to employees after they have worked for a certain period of time. Pensions are usually based on a combination of salary and years of service, while annuities can be based solely on age.