Is an IRA the same as a pension?

[Richard]

Can someone explain the difference between an IRA and pension? Or are they the same things?

[VineetB]

A pension is a defined benefit plan. The company contributes money on your behalf. Your benefits are determined by a formula that may include factors such as your salary history and years of service. The company invests the money ans assumes the investment risk.

An IRA is a defined contribution plan. You contribute all of the money and decide how to invest it. Your benefits are determined by how much you contribute over how many years and by how successful you are in investing. You assume all investment risk.