The pension plans are similar in some ways, a life insurance contract that covers joint contingency of death, disability or retirement.
Retirement plans are in life insurance that combines risk and savings.
The contributions of the holder can be made as follows:
- In a single payment (known as single premiums)
- In a regular or an extraordinary way and no limit to the amount of tax such contributions, unlike what happens with pension plans.
For its part, the benefits obtained from retirement plans may be in the form of capital (on a single charge), in the form of income, and in mixed form.
An important difference between retirement plans and pension plans is that contributions made to retirement plans can be recovered or rescued, by statute, from the two years, although in some cases this period is shortened without having to wait until retirement or other status legally admitted as in pension plans.
In any case, the right of early redemption of retirement plan has a financial penalty (redemption fee) will be greater the sooner the rescue.
Other important differences between pension plans and retirement plans are with regard to the latter, the following:
- No limit on annual contributions, like pension plans.
- Unable to switch from one retirement plan to another without paying taxes for it.
- It allows pension plans guaranteeing a certain return (technical interest)