Public Pensions

Doesn\’t this make you excessively happy?

Public sector pensions are set to cost taxpayers £1,025 billion – or £40,000 for every household over the next 20 years – according to figures released today.

Two grand a year….£38 a week of your money goes to paying those sloths who have retired after a lifetime of spending your money.

"Urgent change is needed to reduce the bill to taxpayers – for a start, the pension age for existing public sector employees should be raised to the state pension age."

Public sector workers can retire at 60, rather than 65, making the taxpayers\’ commitment to their pension pots greater.

About time that happened, don\’t you think? Maybe we can make it 75 while we\’re about it?

7 thoughts on “Public Pensions”

  1. The average household (using the Telegraph’s calculation method) over that period will earn about £1.6m, so the idea that we should reduce soldier’s pensions to shave off a tiny % is pretty silly.

  2. I think public sector final salary pensions are bad for another reason – they mean that too many government workers do not have a direct stake in the private (i.e. wealth creating) sector. Many will have ISAs, private stakeholder pensions, etc as well, and I’m sure most realise the need for a strong economy to pay for the government services they presumably support. However, the effects of excessive taxation and regulation on private business may not get their attention, as having both their salary and their pension guaranteed by the state grants them a sort of immunity from having to worry about such things.

    If they had DC pensions instead, they may not vote to put themselves out of jobs to save money, but they may be more likely to vote against government waste elsewhere. The other benefit is that the employer contributions would have to be made now out of current spending, forcing greater discipline on the managers and politicians, and removing the ability to store up liabilities for future generations to pay.

  3. The government’s backdown a few years ago was inexcusable. All they had to do was say they’d honour age-60 pensions for the posts people already held, but the retirement age would go to 65 for everyone accepting promotion. After a fleeting period of perverse incentives for a few employees, almost everyone would be on age-65 pensions. For a change in pension type you could do the same stunt again – or perhaps just offer a small pay rise for anyone agreeing to move over to a DC pension. All this could be done without violating any contracts of employment.

  4. No. We want Civil Servants to retire as soon as possible: look how much it costs to keep them employed.
    We want them to retire at 60. All we need to do is stop paying their pension at 65.

    Antony Trollope had the right idea.

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