4 ms·

Don't get confused by the word pension - the defined contribution version (closest equivalent of a 401k) is still called a pension in the UK.

• jleyank 4y ago
  I guess it’s where the money is and how it’s controlled. Here in Canada, we have a tax free and tax deferred mechanism and both are owned by the individual. Pension, as far as I can tell, is used as in the us - it’s a defined benefit mechanism. Having worked in tech, such things are unfamiliar to me. There are also work based, and residence based government pensions/benefits separate from whatever comes from some aspect of government or corporate employment.
  • jstx1 4y ago
    > Pension, as far as I can tell, is used as in the us - it’s a defined benefit mechanism My point was to draw a distinction between this and the UK (where the author of the post is). In the UK there's - state pension (similar to social security in the US) (not the topic of this thread) - defined benefit pensions - increasingly rare because they're expensive for the employer (some older companies and the National Health Service still have this type) - defined contribution pensions - similar to a US 401k - you contribute some % of your salary, your employer does too, you can decide what to invest in or transfer to a different provider when you move jobs - this is still called a pension in the UK, it's the most common type of pension and it's the topic of the original post