What is the difference between a pension and savings fund?

[Olaoluwa Abraham Abiodun]

These are looking very similar but there are different things, pension is given by a particular company or department where you have served many years of your life while saving your own funds depend upon you, you can save only for few months or for whole of your life from your own earnings.

 

[Sad56]

There is a big difference between pension and saving funds. Pension is monthly payment which is given by any company, government etc but saving funds is that nkney which you save by yourself. Pension is mandatory cut of from your pay but saving funds are not mandatory.

 

[Asad Ali]

Pension shall be a form of money or fund you have earned on retirement or as thankfulness for working for a number of years with an agency or corporation for maintaining your financial needs after your retirement. Savings are the money you want to save on your personal needs everyday, weekly or monthly.

 

[Judee201]

Pension fund is a money being saved for you by your organization that you don't have access to or can't access except you retired which tends to be for a longer period.

Savings fund is a money being saved by yourself and you can access at your disposal anytime.

 

[Adeyoola7]

Pension fund is meant for you when you retire from a long time work with the government at your old age that to compensate you for your work done but savings fund just meant for you to save more money for the future purpose

 

[Akinwale701]

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.

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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 funds are the total amount of miney paid to a person who is known as a pensioner while savings fund refers to the amount of money one has kept in his or her bank account over a period of time, usually any time. a person can be both a pensioner and a saver.

 

[btaliat]

The only difference I can figure out from your definition is that pension fund is normally pay by your government while saving fund is your money thay you are keeping for the future circumstances. I may be wrong though

 

[Yasmin]

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.

 

[BrolySSJ]

The only difference I can figure out from your definition is that pension fund is normally pay by your government while saving fund is your money thay you are keeping for the future circumstances. I may be wrong though

Pension funds is not money that is paid by the government. In fact, whilst this is a common misconception, it is actually your own money that you have that you are deducting from your salary every month in order for it to be put into your pension fund. Therefore, at the end of the day it is you that is funding your pension, just as you would fund your savings account.

 

[Faani18]

While doing a job you make a pension account and you choose the amount of money that will be saved and upon the time of retirement you will get that. Pension money will help you to meet your financial situation. Saving account is what you make in a bank and do deposit for rainy days.

 

[btaliat]

Pension funds is not money that is paid by the government. In fact, whilst this is a common misconception, it is actually your own money that you have that you are deducting from your salary every month in order for it to be put into your pension fund. Therefore, at the end of the day it is you that is funding your pension, just as you would fund your savings account.

I don't agree with you. Government pays part of your pension. Where I work, government pay half while the employee also pay half but if it is saving fund, it is all by yourself without any government contributions.

 

[FreshKaz11]

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 is not that much,but one could easy take when needed,while the other will be giving when you retire from your duty line..

So for saving of funds,you save that incase of emergency that's why you save the funds their ..

But as for pension saving,you could only get that when you are off work,like when you get retire at work..

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.

 

[eenya00]

A pension fund and saving account has many similarities but are actually different tools used in the financial circle, for pension funds you are limited to when you can access that said amount and you have to fulfill certain criteria before you can be be eligible for being a pensioner.

 

[MarieArie]

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.

Since you will have access to as much money as you want in the pension pool, you will no doubt have to buy an annuity. An annuity is a policy you purchase from an insurance provider that promises to give you an income before you die, in exchange for your pension funds being turned over to them.

 

[Davis]

Pension fund is different from savings. In saving,the save us the only entity involved.while pension is being given by a company to an employee. Also you can get your saving in a stipulated time, while pension is associated with age.i mean until you retired.

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Pension fund is different from savings. In saving,the save us the only entity involved.while pension is being given by a company to an employee. Also you can get your saving in a stipulated time, while pension is associated with age.i mean until you retired.

 

[DareIsrael]

But are similar as they both deal with keeping money for future purpose. But their are contrast between. While pension has to do with a certain percentage of your salary being deducted from your salary by a pension service, savings have to do with you will keeping some cash aside for future purpose.

 

[Richard92]

There is a little different between savings fund and pension savings fund is the decision the of a worker, but tension sometimes it is the idea of the organisation sometimes it is required for you to register for pension why saving your fund it is your own idea you may want to or not to

 

[Diamond07]

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.

Quite frankly, they are different things. A pension fund is paid to you after your years of working with an organization. While, a savings fund on the other hand, can be from your own monthly salary, set aside to run your expenses. You could be spending from your savings fund, but you can't spend from your pension fund because it's not in your possession yet.

 

[Abisola]

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

 

[Ayokex]

Pensions is for a longer period of time than 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.

Pension is a form of savings that is meant for retirement plan. Such type of savings does not give access to the owner until the retirement time. Savings is any portion of someone's income that is taken to be kept for future use. Su h money can be accessed by the owner at any time.