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Public Pensions are still unaffordable

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The Prophet:
Despite the recent unrest by public sector workers and threatened strike action, public sector pensions cannot be allowed to continue at current levels.
The average Private sector worker has a pension pot of £30,000 on retirement which would produce and index-linked joint annuity of £900.
However members of the Public and Commercial Services Union receive an average pension of £6,000 a year, which would require a pot of £200,000 if it was not funded by the taxpayer.

The unfunded cost of servicing the UK's public sector pension liabilities of £1.2 trillion of is £45bn each year!

The Prophet:
New figures show that 90% of public sector workers, 20% of the total UK workforce, enjoy final-salary pensions funded by the taxpayer.
Most of these are payable from age 60.  The current government outstanding public-sector pension liabilities are a staggering 53% of national income.
Towers Watson believe the figure is 81% of GDP and more than the official national debt. (60% of GDP)

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