An average worker needs to work 52 years to achieve the same retirement income as an MP who works for 20 years thanks to their generous pensions.
Ordinary workers with private pensions must work significantly longer than their MPs to achieve the same income in retirement. According to calculations by investment firm AJ Bell, an average worker earning £37,430 would need to work for 52 years to secure the same retirement income as an MP working for 20 years, thanks to their taxpayer-funded, gold-plated pensions.
MPs receive a basic salary of £91,346 plus expenses and benefit from generous defined benefit public sector pensions, which provide a guaranteed and inflation-proofed income in retirement. In contrast, such schemes are almost non-existent in the private sector, where most workers contribute to a defined contribution scheme - a retirement pot whose value is linked to investment performance. The gold-plated pensions paid to politicians and public sector workers give them a significant advantage in terms of enjoying a decent living standard in old age. AJ Bell's analysis reveals that it would take an MP 10 years to accrue a pension worth £367,000 - resulting in yearly retirement payments of £17,911 - compared to 39 years for the average worker. After 20 years, the value of an MP's pension will have reached £735,000, translating to an annual income of £35,822. It would take an average worker 52 years to save the same amount. Laith Khalaf, of AJ Bell, said: “MPs pay quite high pension contributions and have low job security. But a fairly short shift in Parliament can still deliver some perky pension benefits. “The MPs’ scheme is less generous than it was but it still earns the moniker gold-plated when you consider how long it would take the typical worker to build up a similar retirement income. There are relatively few MPs compared to nurses, teachers or civil servants, so the overall cost of the scheme compared to other public sector pensions is tin
Pensions Mps Retirement Public Sector Income Inequality
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