The reason we are going to have a mbuttive pension crisis is that one in 5 people now work for the government or government agencies. These people have cast iron pension schemes using our tax contributions to fund these unrealistic pensions. Life after retirement for these government workers is going to be rosy compared to the average man on the street who has a personal pension scheme..or no private pension at all.
Look at it this way............you are a retired gov employee ( direct ......police .... local authority etc.) lets keep the maths simple...............you get a pension of 35k ( ok you were a senior person) but you would need a fund of £1000,000 to acheive that................and a fund of £500,000 to achevie a pension if 17.5 k at current interest rates . Look at the cost of running these schemes............and its not as if the goverment put all our national insurance contributions to one side in a pot .to pay for it all..........of course they didnt . There is no POT.
So how many people in the private sector with personal pension funds have managed to build funds that big? Not too many. And there are tens of millions of state workers whos pensions will be funded by the rest of us. Council tax will carry a high burden of pension contribution in the future. Forget complaining about your bins not being emptied your contributions will be going on pensions for ex council workers like Vegetarian Lesbian Libutton Officers and other posts that local gov cannot do without.( not that I have anything against Libutton officers )
This is madness. Salary linked pensions shoould be banned across the board. What you get out should be linked to what YOU put in . And there should be a compulsory contibution towards retirement from every pay packet earnt. This is what happens in Singapore..and it works.
How on earth will we ever get a change of government when Approaching 25 % of the work force is workings directly or indirectly for them!!!!
And by the way who gets the best pension deal in the country......................your right !!! MPs ( and who's paying for it ?? you and me! )
God help us !!!
Barry
