are pensions taxed 
yes your pension income is taxed and you will be taxed at your ordinary income at the time you receive your pension money the bottom linepension plans are defined benefit plans that are primarily funded by employers withdrawal credits are the amount that the employee is allowed to withdraw from their pension plan when they leave a job or for other qualified reasons pension plans used to be the primary way individuals would save for retirement however now defined contribution plans such as the 401 k are more popular 