Makes my blood boil

Muscle750

In their job which involved spending 25 years plus of living overseas their children were all educated at Public school here paid by the tax payer plus of course all the "expenses" i know anyone could be a civil servant but then whose going to pay for the pensions they have................think about it
It was in the press recently that some "normal" salaried Public sector workers as long as theyve got 35 years service and retire at normal retiring age some can see up to 55% pay rise when they get their pension including the likes of hospital porters etc .
When i retire if the figures im quoted are the same ill be looking at 40% plus drop in income. Something doesnt exactly seem fair to me ill look forward to been ripped to pieces in following posts

TadleyBaggie

Not the first time the OP has had a bee in his bonnet about public sector pensions: https://forums.moneysavingexpert.com/discussion/5121940

Andy_L

Muscle750 wrote: »

It was in the press recently that some "normal" salaried Public sector workers as long as theyve got 35 years service and retire at normal retiring age some can see up to 55% pay rise when they get their pension including the likes of hospital porters etc .

Yes, if you spend 40 years working for ~15k (Edit, was 17k) then the pension, combined with the (new, flat rate) ~8k state pension can be ~50% more than your salary.
Its a very niche case though since it makes huge assumptions about inflation, (lack of) career progression & future changes to both occupational & state pensions

chucknorris

Muscle750 wrote: »

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

That's what you get when you don't plan your finances, there will also be a lot of people worse off than you, who also didn't put much thought into their retirement planning.

If you value public sector pensions so much, why didn't you get a job in the public sector? I worked for many years in the private sector, but as part of my retirement plan I started working in the public sector when I was 52, the pension is really great value, and so is buying 'additional pension' in the public sector too (I bought the maximum allowed). Although saying that, I have only just decided to take early retirement at almost 59, this December, because I now value time more than money. I didn't wake up to pensions until 6 years ago, but by this December (6.4 years later) I will have managed to obtain a £10,600 public sector pension and also have £145k in my SIPP (that includes a small pension pot that I did actually invest in much earlier in my teens and 20's), not huge, but not that bad for achieving it in mostly in less than 6 and a half years. I'll be drawing down my SIPP at about 4% per annum, so that makes my pension income, including the state pension about £23k per annum, but I also do have other significant investments (property, ISA's and also non ISA shares).

kidmugsy

For all I know our civil service may be like the Federal civil service in the USA. There the lowly paid are paid more than they'd make in the "private sector" and the highly paid are paid less. By "paid" I mean what Americans call "compensation", so pay, pension rights, medical insurance, and doubtless other bits and bobs.

Muscle750

As you quote the pension is of great value and youve managed to get £10,600 by buying more etc i would be very interested to know what i would have to AVC my company pension to achieve that extra pension level. Certainly alot more i imagine than you have.Im never going to win this argument i know. I know quite a few who work at GCHQ and theyve all dived out the door at 55 with a smile on their face. I know of one guy who works for a council in kent, Hes been there a long time he pays 6% from his salary they pay 12%, this to me is where its all wrong im afraid i defy anyone to find a private sector pension where double is paid by the employer.

JoeCrystal

Muscle750 wrote: »

Hes been there a long time he pays 6% from his salary they pay 12%, this to me is where its all wrong im afraid i defy anyone to find a private sector pension where double is paid by the employer.

My employer pays 2% while I pay in 1% into a DC pension pot which due to its low contribution rate is projected to pay me an amazing income of 2.3% to 7.6% of my current salary per year at 67 in thirty seven years). I do agree with your sentiment about the DB pension scheme on the whole, although it is both private and public sector DB pension schemes I get annoyed about. Still, I am resolved to put aside 25% of my salary into my own private pension in some small hope to get an okay pension income. Which is why my blood boils every-time I see someone moaning about how much they have to pay toward to their DB pension scheme.

westv

My previous employer paid 20% and I paid 5%.
My current employer pays 19% and I pay 10%
Both private sector.

saver861

Muscle750 wrote: »

As you quote the pension is of great value and youve managed to get £10,600 by buying more etc i would be very interested to know what i would have to AVC my company pension to achieve that extra pension level.

Well, if you had saved/invested the additional salary that your public sector counter part did not have during the working years, then its likely you would have achieved most or all of the £10,600.

You can't have it both ways!!

Muscle750 wrote: »

Certainly alot more i imagine than you have.Im never going to win this argument i know.

Nope - only because you are looking through blinkers and thus it seems you will be blind to any counterpoints.

Andy_L

Muscle750 wrote: »

I know of one guy who works for a council in kent, Hes been there a long time he pays 6% from his salary they pay 12%, this to me is where its all wrong im afraid i defy anyone to find a private sector pension where double is paid by the employer.

From an employers point of view (especially in the Public Sector where tax/NI treatment are an accounting convenience rather than a true saving) it makes little difference if they pay a 12% pension contribution or 12% more salary. So the important question is how does his salary compare to a similar Private Sector job?

Muscle750 wrote: »

defy anyone to find a private sector pension where double is paid by the employer.

The remaining DB schemes will be paying that sort of rate.