1 December 2011

How to get a pension like a public sector worker's

There are some interesting numbers on public sector pensions in this article in This is Money. To get an equivalent pension to a reasonably well paid state worker (£40k on retirement), contributions of £600 a month for the whole of a working life would be needed (the article says - and that feels about right to me).

This would amount to somewhere between 20% and 30% of income going to pension contributions (my calculations).

No-one's saying that public sector workers aren't worth their salt (I hope). Nor that (as usual) negotiations couldn't have been handled better. So there is certainly some sympathy around, but in these straitened times we all need to be aware of the cost of what is being provided in order to keep things as fair as they can be. And it isn't fair that everyone else has to contribute at the expense of their own futures.

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