T
he sheer cost of gold-plated public sector pensions is today laid bare. Analysis for The Sunday Times reveals that unfunded inflation-proof retirement deals have saddled future taxpayers with a bill of £1.3 trillion — nearly half the national debt.
It shows a stark divide between the retirements of public and private sector workers, with one able to rely on the taxpayer while the other contends with investment risk and relentless tax threats.
Most workers in the public sector have generous defined benefit (DB) pensions, also known as final salary schemes, where your income in retirement is guaranteed and inflation-linked. They have all but disappeared in the private sector because they are too expensive to run.
As fears mount over the possibility of further tax hikes in the autumn budget to fill a multibillion black hole in the country’s finances, we reveal that:
