Public sector pensions could cost each UK household £40,000, according to the tax payers alliance. They cite the NHS pension fund as an example, which has 8,500 retired employees on an annual pension of £33,000. Controversially they are calling for the age of retirement for public sector workers to be brought in line of those in the private sector.
There has also been concerns about the widening gap between the final salary pension schemes offered in the public sector and the less generous schemes offered to the majority of those in the private sector. However public sector workers tend to receive much lower annual increases in salary than those in the private sector. In some instances, these have been lower the the annual inflation rate, leading to what many would call a pay cut.
