What is the difference between a pension and savings fund?

[cowantussie]

A provident fund is a retirement fund run by the government. A pension plan is a retirement plan run by an employer. Pension funds operate much like annuities. Provident funds operate more like 401(k) or savings accounts.

 

[Dowenship]

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.

A pension fund is been deducted out of the gross income and company's additional fund while savings is either from your daily income or monthly depending on the individual.

 

[Richard92]

Like you just said they ( pension fund and saving fund) looks similar but they are actually bith dufferent things, pension fund is generated by the government or your company for you in order to secure your future when you retired while saving fund isnthe money you actually saved yourself.

one big difference between a pension and a saving fund his pension cannot be withdraw once but receiving phone can be withdraw anytime and can be withdraw as a whole.

 

[Robust]

Pension has to do with the regular payment to a person that's intended to allow them subsist without working. While savings fund has to do with the saving or reserve of money set aside for some purpose.

 

[Prettyjanie]

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

I agree that pension is for a longer t
Period of time, however, the major difference is that in pension, it is a contribution from both you and the government, while savings is strictly your own contribution.

 

[Richard92]

I agree that pension is for a longer t
Period of time, however, the major difference is that in pension, it is a contribution from both you and the government, while savings is strictly your own contribution.

One big difference between a pension and a saving fund in his pension and you paid to workers monthly why saving fund is a personal and private account of an individual which he or she can withdraw at once if you want to make use of it.

 

[GIFTMICHAEL]

Pension is totally different from.savings. it is the reward as a benefit of work steadfast, and loyalty towards your field of profession. While savings is story treasury asset for future purposes.

 

[joy101]

There are different between pension and savings because pension is for organization fund that they pay you monthly, savings is little you save from your bank.

 

[Lens]

Pension and savings are not the same. Pension is a small amount of money given to you periodically all through your life time after you have retired. Savings is the money you have accrued for yourself while serving in the industry

 

[babdud02]

They both are almost like the same thing but you can’t touch your pension funds until after retirement that you’ve received it but if you wish you can take and use part of your saving fund

 

[Richard92]

They both are almost like the same thing but you can’t touch your pension funds until after retirement that you’ve received it but if you wish you can take and use part of your saving fund

I want difference between a pension and a saving fund is pension is paid monthly while saving fund is your actual money you saved in your private account and can be withdraw at once.

 

[Heatman]

I believe the difference is, a pension is organized and control by the organization in which a person works and it is a constant amount, but for saving fund you have full autonomy of the account, you can deside to put any amount at any point in time.

Well, I believe that it's something that most people get confused about but it's quite simple. Pension gets paid to you after you retired but saving funds is something you saved.

 

[Snazzy001]

Pension is a token there is usually paid to civil servants that have retired and it is paid monthly why savings fund is money that you must have saved for a long time meant for a particular purpose

 

[Senator]

With pensions plan you are saving saving money for over a very longer period of time unlike when you're investing where it can either be long term or for short term period

 

[Richard92]

With pensions plan you are saving saving money for over a very longer period of time unlike when you're investing where it can either be long term or for short term period

Pension fund I only received monthly or paid monthly but the savings are individual money that one puts into his own account and can withdraw it at any time.

 

[Bousine123]

A saving fund can be tapped into any time you feel the need to take money for emergency funds. But you cannot say so for a pension fund.

 

[BrolySSJ]

A saving fund can be tapped into any time you feel the need to take money for emergency funds. But you cannot say so for a pension fund.

Recently in my country there was actually an article that is allowing people to use their pension fund in order to recover from the pandemic and i think that for a set period of time you can access your pension fund as you would with a savings account.

 

[Shigobad2020]

Pension are meant to be a longer saving method used in securing the future benefit while saving is for sometime , for example investing in a business for just a period of time.

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.

 

[Yusuf]

Pension fund account is just like putting your money in an account that is now Withdrawable for a number of years based on the agreement signed with the company. Savings can be withdrawn any time

 

[BrolySSJ]

Pension fund account is just like putting your money in an account that is now Withdrawable for a number of years based on the agreement signed with the company. Savings can be withdrawn any time

In this way sometimes a savings account can be a much better option because you have the option to withdraw at any time should there be unforeseen expenses that may arise in the future for you.

Post automatically merged: Sep 5, 2021

Pension are meant to be a longer saving method used in securing the future benefit while saving is for sometime , for example investing in a business for just a period of time.

Some people actually have their saving accounts for long period of time and this could be for years and years. Not many people change or switch banks for their savings account unless there is financial concerns with the bank.