What is the difference between a pension and savings fund?

[BrolySSJ]

Pensions tend to be for a longer period of time than savings or investment plans. Generally, the earliest you can take benefits from a personal pension is aged 60. Therefore, they are usually unsuitable as shorter term savings plans. If, for example, you were hoping to accumulate a fund to pay for a child’s education down the line you would probably be much better off putting your money into a savings plan or investment bond.

This makes more sense if you have immediate need for the money in order to have easy access to it. Also there are time when your pension can be paid out to before that age, perhaps if you choose rely retirement or something like that which could be a way to get your pension when needed. Other than that you are correct in that you should rather have a savings account. What is the difference in interest between a pension fund and a savings account.

 

[Adegbindin Abdullahi]

Pension is a given to you when you retire after how many years of work,pension tend to take a longer period of time than saving plans but in saving plan you can get your money at time you want it and again in pension plan,you don't have access to the money until you are retired but in saving you can have your money when you need it

 

[GIFTMICHAEL]

Pension fund is meant for pensioners upon retirement.
Pension is set aside from part of their salary through pension administration.
Saving is the one that concern everybody.
Anybody can save, in savings it comes in different purposes and reasons.

 

[Denuola]

1. Tax relief is available on contributions to a personal pension plan within certain limits. Effectively that means that for a higher rate tax payer, a €100 pension contribution will only cost them €60 (tax relief at 40%). Any fund growth in a pension is tax free and a substantial amount of the pension fund at retirement can be taken tax free also.

Payments to savings and investments accounts/plans, on the other hand, do not receive tax relief. Additionally, any investment growth or interest earned may be subject to DIRT or Exit Tax



2. Pensions tend to be for a longer period of time than savings or investment plans. Generally, the earliest you can take benefits from a personal pension is aged 60. Therefore, they are usually unsuitable as shorter term savings plans. If, for example, you were hoping to accumulate a fund to pay for a child’s education down the line you would probably be much better off putting your money into a savings plan or investment bond

 

[BrolySSJ]

Pension fund is meant for pensioners upon retirement.
Pension is set aside from part of their salary through pension administration.
Saving is the one that concern everybody.
Anybody can save, in savings it comes in different purposes and reasons.

In this way the savings account are open to many more people and they are able to be accessed or opened by anyone even if they don't have a constant source of income, however it is also important to note that once you are in retirement the difference between the two starts to fade away and a pension funds starts to look very much like a pension fund as well.

 

[Ebensco]

I don't really know what Ponzi scheme when I started in it, it was when they ran with my money I started hearing about that they are Ponzi scheme. I initially put some of my money into MMM, the biggest ponizt scheme in 2016 that ran away with people's money back then. Thank God have been able to move on with the issues

 

[iori23]

The pension and savings are almost the same because when you retire from work and your savings from your previous job, the government will give you the savings you have accumulated, for example in the bank, but the savings are good when you put them in the bank and your money will grow.

 

[Abbeyola]

When you create a pension fund this is essentially money that will be put away and be paid out to you upon your retirement in order to fund your lifestyle at that time. It ensures that you have enough money even after you retire to continue to meet your financial needs. However, this sounds very similar to a savings account that you have had for a long term in my opinion. In a savings account you can put or deposit a certain portion of your funds monthly and save them for later on, when you so need them, or at your retirement.

What are the differences between a pension fund and a savings account, because they seem to serve the same purpose and have the same mechanisms driving it.

The difference between pension and savings are quite different from each other.
Pension fund is made by the employee and employer.
While savings are one's personal savings without any form of assistance by anyone.

 

[marky]

Strategy is same however there is a ton of contrast b/w both. Saving assets is up to you the amount you , save higher and get investment funds more, however in benefits there is a reasonable distinction. It is given by government at the period of retirement and consistently they pay you till your passing and even after death your significant other can get that annuity till her demise as well. Yet, saving subsidizes just for quite a while.

 

[Chumzy]

Savings are money set off from the current earnings of an employee. On the other hand pension is a payment an employee receives after his faithful years of service. Pension is like a reward for deligent service over a long period of time.

 

[Thosynho]

When you create a pension fund this is essentially money that will be put away and be paid out to you upon your retirement in order to fund your lifestyle at that time. It ensures that you have enough money even after you retire to continue to meet your financial needs. However, this sounds very similar to a savings account that you have had for a long term in my opinion. In a savings account you can put or deposit a certain portion of your funds monthly and save them for later on, when you so need them, or at your retirement.

What are the differences between a pension fund and a savings account, because they seem to serve the same purpose and have the same mechanisms driving it.

Pension fund is quite different from savings fund. Pension is the statutory savings you made towards your retirement and you can access it anytime or anyhow except otherwise stated. Savings account is an account you open yourself and decide the amount to be saving at will. You could withdraw from it anytime you so desire.

 

[Philip Omotayo]

A pension is a certain percentage of money set aside by public and private companies for employees for a retirement purposes. Pension is type of saving plans that an individual do not have access to until certain age and retirement. While saving is setting aside some amount of money by an individual using financial institutions or other financial services to meet a specific need which could be short or long term.

 

[Succjay]

When you create a pension fund this is essentially money that will be put away and be paid out to you upon your retirement in order to fund your lifestyle at that time. It ensures that you have enough money even after you retire to continue to meet your financial needs. However, this sounds very similar to a savings account that you have had for a long term in my opinion. In a savings account you can put or deposit a certain portion of your funds monthly and save them for later on, when you so need them, or at your retirement.

What are the differences between a pension fund and a savings account, because they seem to serve the same purpose and have the same mechanisms driving it.

I think the difference between a pension fund and a savings account is the person running it. The pension fund is handled by the government and is not released until you retire while savings account is handled by the individual who has access to the account at anytime.

 

[Nathaniel]

• #9

Pensions tend to be for a longer periodof time than savings or investment plans. Generally, the earliest you can take benefits from a personal pension is aged 60. Therefore, they are usually unsuitable as shorter term savings plans.

 

[Usman Sattar]

A DB pension
plan promises to pay you a certain amount of retirement income for life.
The amount of your pension is based on a formula that usually takes into account
your earnings
and years of service with your employer.
In most plans, both you and your employer contribute.
Your employer is responsible for investing the contributions to ensure there’s enough money to pay the future pensions for all plan members.
If there’s a shortfall in the money needed, your employer must pay the difference.
Sample formula – 2% x your average salary in the past 5 years x number of years you were a plan member.

Post automatically merged: Feb 3, 2021

A DB pension
plan promises to pay you a certain amount of retirement income for life.
The amount of your pension is based on a formula that usually takes into account
your earnings
and years of service with your employer.
In most plans, both you and your employer contribute.
Your employer is responsible for investing the contributions to ensure there’s enough money to pay the future pensions for all plan members.
If there’s a shortfall in the money needed, your employer must pay the difference.
Sample formula – 2% x your average salary in the past 5 years x number of years you were a plan member.

 

[GIFTMICHAEL]

In this way the savings account are open to many more people and they are able to be accessed or opened by anyone even if they don't have a constant source of income, however it is also important to note that once you are in retirement the difference between the two starts to fade away and a pension funds starts to look very much like a pension fund as well.

Exactly in the end the difference will be clear and noticeable.
Pension savings is different from the ordinary savings account even when a person enroll in a pension saving plan with an insurance company. This kind of saving in a pension plan is done for specific period of time after which it mature and be split and in months.

 

[Sariana23]

Personally, I think the difference lies in the responsibility you have with a savings account. If you are responsible, you have the commitment to save monthly and not touch that money until a certain age, and the assurance that the bank will not close at any time and you can lose your savings. In the case of the pension, it does not depend on you, it is mandatory and without permission.

 

[Klismannm12]

the difference is way to cleanse did not get paid to you until after retirement or like the savings plan where you can just sleep for some news and then withdraw your money I need you to start up something will be a business but pension would have to wait until you retire from active service that is when you have access to your pension.

 

[solomonmali]

Pensions tend to be for a longer period of time than savings or investment plans. Generally, the earliest you can take benefits from a personal pension is aged 60. Therefore, they are usually unsuitable as shorter term savings plans. If, for example, you were hoping to accumulate a fund to pay for a child’s education down the line you would probably be much better off putting your money into a savings plan or investment bond.

 

[Ziki]

A defined benefit pension plan is a retirement savings plan offered through your employer. The big draw to defined benefit pension plans are just that - in retirement, you have a defined amount that you will receive each and every year. This amount is often linked to inflation.