Makes my blood boil

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
340 replies 44.3K views
Muscle750Muscle750 Forumite
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Ive found out that someone i know who was in the civil service for all of their working life and did do very well in their career is now retired on a £100k a year pension, for lets say not exactly what you would have to contribute in the private sector to have such a return.
Im in the private sector work 50 plus hours a week have been in the company pension scheme now some 25 years with the delights of the final salary been pulled from under our feet years ago and my latest forcast is nothing short of shocking i contribute 5% as do the company yet with 12 years left before i can retire at 67 ill be lucky to see £15k a year.................meanwhile ill keep funding the public sector gold plate pensions along with every other mug in the private sector.
I also have my own pension with the pru which also isnt looking that great sadly mainly because i cant afford to throw vast sums of money at it and never have been able to
The transfer value as of now is just over £70k the company pot stands at around £38k................Sorry if you think im going on but it just infuriates me along with many others. Only got to look at plight of the steel workers etc
«13456734

Replies

  • GoldiegirlGoldiegirl Forumite
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    What is your current salary - if you have been a low to average earner during your working life, it's unrealistic to compare yourself with a high earner in the civil service.
    Early retired - 18th December 2014
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  • qwert_yuiopqwert_yuiop Forumite
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    If the pension is over £100,000, they must have been earning around a quarter million. What public sector job paid a salary like that?
    “What means that trump?” Timon of Athens by William Shakespeare
  • edited 28 May 2016 at 11:47AM
    KynthiaKynthia Forumite
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    edited 28 May 2016 at 11:47AM
    Other people doing well angers you? People in the civil service retiring now are most likely to have been part of a scheme that pays out half their final salary if they worked there for 40 years. So that person must have been a high - earner with a very senior role and worked for a long time. So they sound like they would have done well whether they were private sector or public sector as the civil service isn't full of people earning £200k plus. In fact the more senior you are in a private sector organisation the better your pension deal compared to the lower earners in the same company.
    That seems a little unfair but I bet £200k plus earners in the private sector will be retiring on very good pensions too.
    Don't listen to me, I'm no expert!
  • edited 28 May 2016 at 11:53AM
    GunJackGunJack Forumite
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    edited 28 May 2016 at 11:53AM
    ^^^ this... the CS is notorious for having the majority of staff on probably less than average salaries (a lot on min wage or not much more) and a small number on huge salaries...

    Consider this - the average CS pension is around £5k a year, so your mate is one of the exceptions.... as stated above, he must have done VERY well for himself and been on a salary of £200k to get a £100k pension..

    He probably deserves the pension for putting up with some of the frustrations of public service for 40+ years :)

    Oh, and bear in mind that CS salaries are typically way under those in the private sector for similar roles/responsibilities. I know when I moved from CS to private sector it came with a 20% salary increase....will be even bigger difference at the levels your mate was at ;)
    ......Gettin' There, Wherever There is......

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  • dunstonhdunstonh Forumite
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    Goldiegirl wrote: »
    What is your current salary - if you have been a low to average earner during your working life, it's unrealistic to compare yourself with a high earner in the civil service.

    Historically, public sector workers were lower paid than private sector. However, the pension was good and that was a reward for public sector life. However, in the 2000s, public sector pay accelerated faster than private sector pay. This is in part what has required the increased contributions by most public sector jobs.

    Some public sector roles were abused and people were promoted into higher paid roles in the last few years of their working life and their pension was boosted accordingly. This is in part why career average schemes are increasingly common now.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • saver861saver861 Forumite
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    £100k pension is a lot of pension. Firstly it would depend if this was entirely salary based pension or if it includes other private pensions, AVC's etc.

    However, there are a number of positions in the private sector paying higher salary than the Prime Minister. Top specialists in the NHS etc can be earning significant sums.

    The DB pension of public sector is an advantage - however most of those working years are probably on a somewhat lower salary than the private sector equivalent. So, your blood might be boiling but check it out further and it is possible many in private sector earned considerably more than those in public during their working lives.

    Maybe some balance is required here.
  • Andy_LAndy_L Forumite
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    https://www.gov.uk/government/publications/senior-officials-high-earners-salaries

    56 who could be on £200k+. Only 2 of which are actual Civil Servants, 10 come from Other Central Gov (I presume that means secondments from the NHS etc) and the remaining 44 are "Commercial enterprise in the public sector" (Most of whom seem to be people bought in from industry to deal with HS2)
  • GunJackGunJack Forumite
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    dunstonh wrote: »
    Some public sector roles were abused and people were promoted into higher paid roles in the last few years of their working life and their pension was boosted accordingly. This is in part why career average schemes are increasingly common now.

    where I was, it was getting on shifts for a year, for a 10.5% boost to salary (and therefore pension), but we were just humble engineers on low-average salaries..
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • Andy_LAndy_L Forumite
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    dunstonh wrote: »
    Historically, public sector workers were lower paid than private sector. However, the pension was good and that was a reward for public sector life. However, in the 2000s, public sector pay accelerated faster than private sector pay.

    Not in the Civil Service (and, IIRC, the police) who were Labours "red-headed step children" and didn't get the largesse they lavished on Schools & Hospitals
  • I love these posters, basically anyone could have been a civil servant, but choose other paths. So stop whining! You chose your career just deal with it and enjoy your life

    Good luck fj
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