Come on, most of the people in the public sector work their whole lives on low wages and no chance of any bonuses or massive promotion. Think of all those NHS nurses that can't afford to buy a house near where they work! There have to be some benefits to working in the public sector, and pensions offer an incentive. We can't all be city boys!
Although I work in the public sector and I will qualify for a final salary pension, I don't think that it is fair that public sector pensions should be so generous compared to private sector pensions. Not all public sector workers are poorly paid (MP's, GP's, senior Civil Servants, Head Teachers etc) just as not all who work in the private sector are well paid. So I don't think it can be argued that public final salary pensions can be justified compensate public sector workers for their lower rates of pay (the lowest paid maybe). However, I don't think that tax relief for private pensions at a rate of 40% for the well paid is very fair either. The Government should concentrate any help given in relation to pension contributions on the lowest paid and not the comfortably/well off.
I find it amazing that the ordinary, everyday person who has put money away for a pension has seen the potential return absolutely plummet over the last 10 years.
The reasons for this include the poor investment performance in recent years, the reduced payouts on annuities and, to lesser effect Gordon Brown stopping the reclaiming dividend tax credits.
Meanwhile, anyone in a final salary scheme, magically escapes all the this that us mere mortals have to put up with.
The public sector schemes will increase in value when they are being paid. Most people with ordinary personal pensions settle for a non-escalating pension, because their meager pension would be reduced even further!
But the additional whammy is that someone has to pay the extra money required to fund the final salary schemes. So not only do the ordinary people lose out on pensions, but they have to pay council tax and other taxes to finance these.
Surely this cannot continue?
Most people in the private sector also work on low wages and without the chance to gain from major promotions or bonuses. Like nurses, the vast majority of private sector retirees are not "city boys". If nurses are underpaid - and many think they are - then their salaries should be reviewed. There is no sensible reason whatever why public sector retirees should enjoy more advantageous pensions treatment than anyone else.
A RELATIVE OF MINE SPENT 20 YEARS CLEARING OTHER PEOPLES RUBBISH AND HIS REWARD IS A PENSION OF LESS THAN £350 PER MONTH. I CONTRIBUTE IN EXCESS OF £100 INTO MY PUBLIC SECTOR PENSION AND WHETHER THE GOVT CHOOSE TO INVEST THAT OR NOT IS NOT THE ISSUE. TOO MANY PEOPLE LIVE ON THE NEVER NEVER THESE DAYS WITHOUT ANY ATTEMPT TO SAVE FOR THE FUTURE. THEY COMPLAIN THEY CANNOT AFFORD TO SAVE BUT HAVE SUFFICIENT FUNDS TO PURCHASE NEW CARS BIGGER HOUSES AND FREQUENT HOLIDAYS AND NOW THE NATION HAS COME UNSTUCK. PLEASE STOP USING THE SAME OLD NUGGET THAT SOMEHOW ALL WILL BE WELL IF THE PUBLIC SECTOR PENSIONS SUFFER IN THE SAME WAY AS PRIVATE SECTOR AND THEN WE CAN ALL LIVE HAPPILY EVER AFTER!!!
i think this issues goes beyond pensions, the government is always harking on about helping key workers get on the property ladder, make the most of their savings etc etc so what i am not a key worker? I still do a job that is vital to the economy of this country and i don't get paid particularly well to do it. I pay taxes and contribute to society by eating out, going to museums etc. But because my line of work has taken me into the private sector and i work for a big corporation i am somehow undeserving of all the help nurse get.
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