Pensions take a hit

Albermarle

Universidad said:

Marcon said:

 You might find this enlightening reading: https://www.civilservant.org.uk/information-pensions.html

That's a fascinating page - particularly the table showing mean/median pensions in payment for the different public sector roles.

Looks like the figures are from the 2009/10 report, so most of those figures are probably 40% higher now, give or take. 

Even so, it's a stark contrast to many of the discussions on this forum about avoiding the LTA - or the recommendation that one would need about 30K per year to be comfortable in retirement. Most people are only half way to those numbers!

I'm overpaying on my pension and I don't see how I could ever get to the kind of retirement pots that are routinely discussed on this forum. Heck, it's quite a sacrifice just to top it up a bit, though I am glad to be thinking about it in time to make some difference.

But it's something of a salve for my worries, to see those much more attainable figures as the "normal" public sector retirement.

As said many times before, it is not really surprising that regular contributors to a forum about pensions, tend to have much larger than average pension provision.
It comes from a mixture of being quite well paid - not spending as much as their peers and saving a large % of income - taking an interest in the long term rather than just today - an element of luck - very good returns from the stock markets over the previous decade or so - pension tax relief, especially higher rate relief.
Of course not all points apply to everybody equally.

Regarding comparing yourself with others, there are a lot of different figures floating around for the size of an average pot, depending on how it is measured. However I think there was recently an article in the DT saying the average pension pot for someone between 55 and 65 was £37,600. I do not know whether that includes DB pensions or not.

gm0

Defined Ambition Scheme. Pooled

The difficulty is not conceiving a solution via international examples with improved characteristics across the population.  But in dealing with the objections and noise generated by entitled winners within the current mess.  And achieving political consensus around a difficult to implement and long term migration.

A few big employers signed up to launch
Clamp of old world DB accrual.
Force migrate the public sector in legislatively.
Then suck in the medium and smaller employers
Avoid gaming with the transfer out/in rules
A fair offer to move in for existing benefits (allowing for the pooling benefits)
IFA industry shrinks to servicing the international wealth crowd
A lot of private DC pension products are crowded out

Pooled DC for the person in the street.  (No death date risk to care about. No need to self manage investments.  You can even (to a limited degree - address sequence risk and cohort luck by smoothing across the group in the scheme (at the expense of the otherwise would have been randomly winners).

No more pensions apartheid with an insider cadre dropping unbounded bills on the kids.  Goodbye DB


https://researchbriefings.files.parliament.uk/documents/SN06902/SN06902.pdf

doris540

 With many public sector employees striking and wanting more money etc funny how they forget that their wages as has been stated time and time again on this forum are less than the private sector and their pension is viewed as compensation. I like to see what they would do if the government turned round and said ok we will give you 5% pay rise however we will reduce the employer contributions to public sector pensions to help pay for it.. End of the day you dont join the army to polish your rifle and the same scenario applies to any job in both the private and public sector. With Public sector employees paying a higher percentage into their pensions they will obviously get less take home pay however they want their cake and eat it.

sheslookinhot

doris540 said:

 With many public sector employees striking and wanting more money etc funny how they forget that their wages as has been stated time and time again on this forum are less than the private sector and their pension is viewed as compensation. I like to see what they would do if the government turned round and said ok we will give you 5% pay rise however we will reduce the employer contributions to public sector pensions to help pay for it.. End of the day you dont join the army to polish your rifle and the same scenario applies to any job in both the private and public sector. With Public sector employees paying a higher percentage into their pensions they will obviously get less take home pay however they want their cake and eat it.

It's been a while since I have read such nonsense.

IAMIAM

doris540 said:

 With many public sector employees striking and wanting more money etc funny how they forget that their wages as has been stated time and time again on this forum are less than the private sector and their pension is viewed as compensation. I like to see what they would do if the government turned round and said ok we will give you 5% pay rise however we will reduce the employer contributions to public sector pensions to help pay for it.. End of the day you dont join the army to polish your rifle and the same scenario applies to any job in both the private and public sector. With Public sector employees paying a higher percentage into their pensions they will obviously get less take home pay however they want their cake and eat it.

What tripe. Public Sector employees usually pay 10-15% into their pensions (COMPULSORY RATE) they then get told, sorry no pay rise for 12 years and then the public scratch their heads when they cant get a doctor or nhs appointment because the nurse on 25k that had to pay thousands to train decides to jack it in and work in aldi full time and do the odd sunday to top up their wages and earn more than the 25k. Why dont you do us all a favour and go stand at your front door and clap for them please, then vote in torys again and wonder why no doctor is available to deal with your medical emergency for the 16th year....

For the umpteenth time. What tory politician sends their child to state school and uses the NHS. Er no one, hello Eton and Bupa, so they couldn't care less. 

SouthCoastBoy

Not sure about employee contributions are between 10 and 15%, lgps is but only when you earn around 67k +

https://www.lgpsmember.org/your-pension/the-essentials/your-contributions/#:~:text=Your contribution rate is based,12.5% of your pensionable pay.

IAMIAM

Next time, google actual public services, NHS, POLICE, TEACHERS, NOT Civil Service - they are the ones who pay the least, make all the decisions, and watch front line staff struggle who pay double contributions. Hello.  

[Deleted User]

Would be nice to see a sprinkle of factual information every now and then.  For example: average wages in the public sector are 7% higher. 

IAMIAM

Deleted_User said:

Would be nice to see a sprinkle of factual information every now and then.  For example: average wages in the public sector are 7% higher. 

Well all you have to do is read all the major news articles 'owned' by the state and then yes, 7% is clearly factual 

Marcon

doris540 said:

 With many public sector employees striking and wanting more money etc funny how they forget that their wages as has been stated time and time again on this forum are less than the private sector and their pension is viewed as compensation. I like to see what they would do if the government turned round and said ok we will give you 5% pay rise however we will reduce the employer contributions to public sector pensions to help pay for it.. End of the day you dont join the army to polish your rifle and the same scenario applies to any job in both the private and public sector. With Public sector employees paying a higher percentage into their pensions they will obviously get less take home pay however they want their cake and eat it.

No idea what this is all about, but have you ever considered finding out some facts? Start with https://www.civilservant.org.uk/information-pensions.html since they seem to be the focus of your bile.