It was reported by accountants PricewaterhouseCoopers, who estimate that, on average, Private Sector Workers would need to put 37pc of their salary into their pension to match the retirement income paid to a Public Sector worker on a similar wage.
Civil Service Pension: To get the average civil service pension of £5,928 a year a person would need a pension pot of £189,151.
Average NHS Pension: To get a pension of £6,931 is equivalent to a pension pot of £221,155.
Average Teachers’ Pension: To get a pension of £9,358 is equivalent to a pot of £298,596. The above figures are according to Hargreaves Lansdown the financial adviser.
If you want a pension of £25,000 a year, you need to be putting £322 each month into your pension, assuming you start saving at the age of 25. Leave it until you are 35 and that monthly figure jumps to £543. At 45 years of age your contribution needs to be £1,017 a month!!!
Average Pay in the UK.
Private Sector: Figures show that average total pay, including bonuses, in the in February 2014 was £451 a week = £23,453 GROSS PA. Excluding bonuses average pay was £418 a week = £21,736 GROSS PA.
Public Sector: The corresponding figures were £462 a week = £24,024 GROSS PA, and £459 a week = £23,868 GROSS PA.
However the unions disagree. Unison said it was “time to nail this myth that pensions in the public sector are ‘gold-plated’. The retirement age for most public sector workers is 65 and, on retirement, local government workers can expect an average yearly pension of just £4,000, which drops to £2,600 for women.”
By having 4 Buy 2 Let properties in Coventry where we are based and where we are investing, you can potentially have an income that would be higher than the Average Weekly wage for both Private and Public Sector workers, and several times higher than their Pension income which they had contributed into for more than 30 years?
- Peter Iwaniszewski
Based on an article which appeared in the Telegraph on March 19th Budget Day written by Paul Farrow