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Comment by walshemj | Hacker News Reader

And a 401k and IRAs is are very poor "pension" plan compared two other countries.

I'm not sure what you're claiming. It's possible to design a very lucrative and costly defined benefit pension, but in the US, no employer is offering it other than governments, and even the governments are beginning to croak under the stress of unsustainable benefits, so new employees are not eligible for them.

I was comparing the US DC (401k) vs say the UK (A Group Personal Pension or a SIPP).

Based on some quick Googling, I don't see what is so much better about an SIPP or a group personal pension plan? SIPP offers some kind of matching from the government, but it doesn't seem significant.

I don't know anything about the 401k system, but the money going into my pension is from my gross salary. Combined with high taxation, it means that it's worth up to twice as much going into my pension as it would be going into my bank account.

SIPPs are beyond my lifestyle.

It's the same in the US.

Main one is Tax relief at your highest rate on income tax you get an extra 20% into your pension - if your a higher rate tax payer you can reclaim the extra tax relief.

For a higher rate taxpayer you put in £60 and get £100 in your pension.

You can also do salary sacrifice and reduce you income tax and NI lability

Unless your retirement tax rate will be lower than your working years rax rate, it comes out in the wash eventually.

It's quite likely that some people today will end up paying higher income tax rates in retirement than today.

Id like to see that worked out in detail have you got an example? unless you mean you bust the lifetime limit, which is just bad planning.

And you can use drawdown to manage your income from the pension and you would of course make use of income from your ISA.

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