Will there be Pension apartheid?

doris540

With recent events and the what can only be called a slaughtering of Private sector and Personal Pensions due to the stock market and other factors in relation to the virus, will there be a long overdue overhaul of Public sector pensions to try and equal things out,. With a now reported that Public sector workers will enjoy up to eight times better pension return than the private sector. According to the Office for National Statistics, just 11 per cent of workers in the private sector who have a pension are in a generous final salary scheme. This compares to more than nine in ten (92 per cent) in the public sector.. David Cameron once said "Public sector workers are the pensions aristocracy and they dont realise it". Ive personally seen a loss of in excess of £12000 off the value of my company pension and my own private pension over the last month. Whilst obviously those in the public sector will see no difference whatsoever to their retirement funding. And before anyone says it i do not want to go and get a job in the public sector i just want to see a better deal for us in the private sector. With the government spending money they havent got like no tomorrow if taxes rise to cover it we will be even worse off and yes the public sector will be as well but with as it stands no loss to their pensions and we will have less income to try and recover our losses over the last month or so. If the government turned round and said all public sector pensions are been reduced to a 5% contribution by the employer there would be uproar.

coyrls

What sort of pension are you getting at the Daily Mail?

Paul_Herring

Ive personally seen a loss of in excess of £12000 off the value of my company pension and my own private pension over the last month.

I've personally seen a loss of a lot more than that.
I take it this is your first bear market in which you've had a substantial amount invested? Certainly sounds like it.
And no, I'm not worried about that loss - I expected it. Didn't know when, or by how much, I knew it would happen. In much the same way that I know I'll be recouping that loss going forward.

 i just want to see a better deal for us in the private sector

How's that going to work then? Where's the money going to come from?
Outside the normal things like you saving more for your retirement, you investing your pension in a way that aligns with your risk/attitude etc.
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Edit: Bother, said Pooh; I've been trolled...

OldMusicGuy

Get a job in the public sector please so this forum can be free of these posts.

Paul_Herring

coyrls said:

What sort of pension are you getting at the Daily Mail?

Don't think it's the Daily Mail.

The DM uses paragraphs...

dunstonh

With recent events and the what can only be called a slaughtering of Private sector and Personal Pensions due to the stock market and other factors in relation to the virus,

Sorry?   What slaughtering are you referring to?  There has been no slaughter. 

will there be a long overdue overhaul of Public sector pensions to try and equal things out,.

There already has been an overhaul of public sector pensions AND public sector pay to try and restore some of the historical differences.

With a now reported that Public sector workers will enjoy up to eight times better pension return than the private sector. 

Historically, the good pension for public sector workers was a reward for public service and spending a lifetime on generally lower pay than the private sector.  

 David Cameron once said "Public sector workers are the pensions aristocracy and they dont realise it".

That is true.   The NHS in particular seems to have a problem with staff not realising just how good their pension is.   

Ive personally seen a loss of in excess of £12000 off the value of my company pension and my own private pension over the last month. 

How have you managed to make a £12,000 loss over the last month when that has been a growth period?

Assuming your information is incorrect and you mean the month before (the loss period was 24th Feb to 19th March), either you have a very small pension or its a very small loss. 

And before anyone says it i do not want to go and get a job in the public sector i just want to see a better deal for us in the private sector. 

Get a better employer then that pays more into your pension.

It is all very well having a rant but your argument is full of holes.   It starts on rocky ground with your suggestion that pension values have been slaughtered.  They have not and its a joke to suggest they have.   You also fail to take into account the good news that drops have on pension contributions for those paying in monthly.   Times like these (which occur frequently) allow you to buy more investments for your money.  Without negative periods, you would get lower growth over the long term.

On reflection, I don't really know why i replied as you have being trolling on this point previously

https://forums.moneysavingexpert.com/discussion/6113632/private-pensions-slaughtered-public-untouched#latest

JoeCrystal

doris540 said:

According to the Office for National Statistics, just 11 per cent of workers in the private sector who have a pension are in a generous final salary scheme. This compares to more than nine in ten (92 per cent) in the public sector. And before anyone says it i do not want to go and get a job in the public sector i just want to see a better deal for us in the private sector. With the government spending money they havent got like no tomorrow if taxes rise to cover it we will be even worse off and yes the public sector will be as well but with as it stands no loss to their pensions and we will have less income to try and recover our losses over the last month or so. If the government turned round and said all public sector pensions are been reduced to a 5% contribution by the employer there would be uproar.

Arguably, the government had made a big step in the right direction with the auto-enrollment with the minimum contribution made by the employer, which is still very low, but it is better than nothing. If it wasn't for that, then my employer will never contribute to the pension scheme and even so most reluctantly, only meeting the three-month deadline for the contributions to the pension provider. At least the auto-enrolment pension scheme has the advantage of default fund maximum charge of 0.75%.

If you want a better pension term and condition for the private sector employees legally required, then write to your MP about it. Only the Parliament can pass the legislation about it.

vulcanrtb

As we often say on these types of threads, did you complain on here when your pension fund was benefiting from massive growth?

ratechaser

Looking forward to the next identical rant in the next few weeks OP...

Bravepants

So your pension is down at the moment, and you want some form of quasi justice by having other peoples' pensions reduced to somehow make you feel better about it?

p00hsticks

doris540 said:

According to the Office for National Statistics, just 11 per cent of workers in the private sector who have a pension are in a generous final salary scheme. This compares to more than nine in ten (92 per cent) in the public sector..

Given that many of those public sector workers are the same ones that people are currently going out to applaud every Thursday evening, I think any suggestion of taking their pensions away from them would go down like a lead balloon.

And I'm very surprised by those ONS figures, since I believe that many public sector schemes, although still defined benefit,  are now CARE rather than final salary. Or are you conflating the term 'final salary' with 'defined benefit' ?