What's the difference between a pension and a savings account at a bank?

Best Answer:

SkánkHunt42: A pension is funded by your employer and you don't have control over the money or investments.

A savings account at the bank is your money and you can do what you want with it whenever you want.

Other answer:

first of all, a bank savings account pays VERY little interest, your earnings are hardly worth mentioning, certainly NOT the way to try to save toward retirement, you can't live that long or work that long
a retirement account, ie and IRA will allow you to put several thousand into an account which earns better interest and does grow over the years you work, in addition you can contribute each year to make the account grow
your employer may have a plan that either you contribute to(a 401(K))
or he might have his own plan that he provides and essentially is free to you until you retire and take distiribution
A pension is from a place of employment. Savings is from your own funds. It's always good to put something away from each pay, even if it's $10 or $15 from your pay. My wife and I have been doing it for over 45 years and it still works for us
Beverly S:
A pension is a retirement account. A savings account is where you put money in the bank to save. There is nothing similar to them.
You don't get a pension at a bank (unless it's direct deposit) unless you are an employee of a bank which provides pensions to their employees when they retire. A pension is a plan provided by an employer through which an employee contributes as does the employer throughout the course of their employment. Then, when the employee retires, they become entitled to a monthly benefit until they die. The amount is determined by how much you've paid into the plan. Some plans provide for spouses in case of your death.

A savings account is merely money you put into the savings account. It's yours to do with as you wish. You can let it accrue, spend it, close it out – whatever you want.

A pension is money paid to you by your employer/union after you retire
A savings account is a place you place/keep your money until you decide to use it
They have nothing to do with each other
Elaine M:
A pension is held elsewhere (and can disappear I the company goes out of business).

A savings account is money YOU put into your account and it's there whenever you need it, but the money IN it is just what you put in, nothing else is added to it.

a pension is something you earn by working, a savings account is just that you fund it with your personal funds
Pensions don't exist at your bank. You get those through some employers. Most don't offer them anymore though and have a 401k instead. Start by just looking up the definition of both.

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