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The main difference between an annuity and an allocated pension is that income payments from a pension are paid by a superannuation fund and annuities are paid by a life insurance company.
| Term Certain Pension and Annuities | Lifetime Pensions and Annuities | Term Allocated Pensions | Allocated Pensions and Annuities | |
| Terms | Fixed term | Lifetime | Life expectancy and variables set by government | |
| Flexibility | No flexibility after commencement | Income variable with no choice. | Yes | |
| Income | Percentage of account balance | Flexibile between minimum and maximum amounts set by government. | ||
| Access to Capital | No | No | No | Yes |
| Social Security | Complying | Can be complying for social security | Complying |