from Hacker News

You Shouldn't Pay into a Pension

by SpaghettiX on 3/21/23, 11:27 AM with 10 comments

  • by jleyank on 3/21/23, 12:14 PM

    This seems to be the argument for “defined benefit” (pension) vs “defined contribution” (401k) to use the us as an example. In the latter case, it’s cash under the workers control and it’s usually wise to contribute enough to pick up the full match. Countries have various mechanisms to save for retirement and it’s wise to do so, while keeping an eye on how taxes will be deferred or avoided with each mechanism.

    This avoids trusting the employer.

  • by cybrexalpha on 3/21/23, 11:37 AM

    This ignores that most employers will do a pension match. So yeah you pay in X% of your salary, but so does your employer. That's X% more money that you're getting — for free.