Pensions and annuities are two different kinds of retirement incomes. 

An annuity is an investment that provides you with a series of regular payments, either for a chosen term or for your lifetime, in return for a lump-sum investment. It can be used with other retirement investments, like account-based pensions, to set you up with an income stream that could, depending on the type of annuity, last throughout your retirement.

It’s recommended you speak with a financial adviser before you make any decisions.