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I'm sorry I'm not sure I understand. How is a retirement account that you control, and whose investments you direct, the same thing as a pension? I always thou

I'm sorry I'm not sure I understand. How is a retirement account that you control, and whose investments you direct, the same thing as a pension? I always thought that a pension was defined as: "Contribute $A/month for X years, and we'll pay you $B/month for Y years after you retire - and don't worry about how it happens, you're guaranteed this money if you qualify." Is that not how pensions in Europe work?

deleted 8y ago
[deleted]
thisone 8y ago
Not in the UK, not anymore and those that do still exist are remnants that don't accept new members. Work place pensions now are like investment accounts, except you have some degree of matching from the company and the government tops you up an extra 20% of what you contribute (it gets more complicated when you get into higher tax brackets, like getting 40% top up on portions, but getting it back by raising your untaxed income level instead of directly into the account. And very high earners it gets more complicated) As an individual you can also open a SIPP which is a personal pension investment account, get all the government benefits but no company match of course.