It estimated that, at current prices, a projected pre-tax final-salary pension for a civi servant born in 1960 would be £28,900 for those in the public sector when they reached 66 years old, but £11,600 for those in the private sector.
"A generous final-salary pension is a great draw to talent for a career in public service, but it also has drawbacks in limiting the flow of people between the public and private sectors," said John Hawksworth of PwC.
"People with long civil service careers may be very reluctant to leave the scheme, especially now that it is rare to find anything comparable in the private sector."
True in the sense that anyone who knows what their final salary scheme is worth ought to take this into account - though this is definitely not always the case. But again this also applies to private sector employees who are in final salary schemes. It's not something unique to the public sector.
There are strange implications here too. What's wrong with people not wanting to move if they've got a good job with a good pension? Surely that is the point of employers (public and private sector) offering such benefits in the first place? You can't really blame people for valuing something that is valuable. All seems a bit wrong-headed to me.
But as I say, I haven't seen the report itself so perhaps all these questions are answered...
1 comment:
Tom,
Delighted to see your name in print again (or at least active on the web!). I am sure you don't remember me but I remember you and Michelle doing an excellent job presenting on pensions during the 'crisis' in 2003-2005.
Anyway, I was wondering if you have sinced managed to locate this elusive PwC report?
Thanks,
Martin Ward
Tel 07956 264186
Email: mwdt_ward@hotmail.com
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