Public Sector Pensions

Which scheme outlawed - money purchase or final salary?

At the end of the day, you're only saying what you are because there is a risk you're not going to get what you thought you were. Maybe what you were told at the time you entered your scheme was right, but things do change and they have - if only we had the benefit of hindsight all the time.

Personally, I don't believe in putting all my eggs in one basket - as well as my pension scheme (which is final salary) I am also putting money away into Cash ISAs, and building society accounts. I have started to think about investing things into stocks and shares as a long term savings vehicle for the next 15-20 years. I have yet to buy a property but at some point I will and if I'm lucky then that will appreciate in value so in the distant future I could sell and reap the benefit of any capital gain. Simply relying on one thing to provide for yourself in old age is not enough. You need to spread it around a bit, as they say!

That's right and their employers (ultimately) include me. What I'd like to know is; how is this cost likely to escalate in coming years and how is it going to effect my standard of living.

Right.

So is it that private sector pay is too low or public sector too high?

Aren't all public sector pension schemes fully funded since there is no chance of them ever going bust or failing to pay up? The question is: who are they fully funded by - at the end of the day?

Don't get me going about the Fire Brigade !

Pete

Well that depends on where you sit! The problem is that the council drives both. They award themselves regular increases, but they also fund most of the rest of care and cut budgets to other care providers. This is particularly true when they get a bigger rise, as they have to recoup the costs from somewhere.

Well by fully funded I mean they have the assets invested to pay for their future requirements. You should not need to top them up. Typical charges are

James