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Massive growth in public sector pension millionaires

A Freedom of Information Act request has revealed a phenomenal rise in the number of "public sector pension millionaires" over the last few years. Based upon the fact that a £33,000 a year pension would require a pension fund of over £1 million on the open market, a staggering 34,000 public sector workers are alleged to be effective "public sector pension millionaires". This is a damning indictment of the UK public sector where benefits, salaries and pensions continue to rise while many around the UK fear losing their jobs.

According to information released, nearly 23,000 of these "public sector pension millionaires" worked in the NHS, 3,680 were former civil servants and 2,658 were teachers. Astonishingly, 400 retired staff from Glasgow City Council and 223 from Kent county council have retired on benefits of £33,000 a year which effectively makes them "public sector pension millionaires". As we covered in one of our recent posts, more and more of your local council tax is going towards the payment of pensions for those in retirement and those who have joined the gold-plated local authority pension schemes.

Unfortunately, these agreements are relatively watertight and until we see any significant change in regulations regarding public sector pensions the taxpayer's ongoing liability looks set to rise and rise. Who will be brave enough to cut back on public sector spending?

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