What Is Provident Fund? How Is It Different From Pension?

[Good-Person]

Well, a pension is a kind of fund which involves a fixed rate which is received by an employee when the employee retires. In many cases, the employee receives this fund when the employee retires. Having said that, I have also heard about provident fund as well. is it something different? i think that provident funds are lump sum payments where as pension is a kind of payment that a retiree receives in instalments.

 

[Nomad]

Pension is something you get after you retire from a job. You will have access to pension funds only after you retire. However, a provident fund is created by deducting a certain amount from your salary and adding an equal amount from your employer to create a fund. You can access your provided funds when ever you want.