Not sure about the details of the calculation

But an interesting attempt to give a sense of scale:

AXA also calculated that a woman in her mid-20s working in the private sector would have to contribute almost a quarter of her annual salary every year to get a pension comparable with a public counterpart.

Given that pensions are simply delayed compnesation that means that public sector wages are, by this measure alone, 25% higher than private sector.

OK, to be more precise, 25% minus whatever pension contribution that public sector workers have to make themselves. Different schemes have different amounts but for some reason 6% sticks in the mind. So 19% then.

4 thoughts on “Not sure about the details of the calculation”

  1. That’s too simple. The public sector employee gets guarantees of index-linked future income regardless of investment performance. The private sector employee gets no such guarantee.

    The existence of that pension guarantee is worth money.

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