The average public sector pension is worth three times as much as the typical scheme still open to workers in the private sector, new research shows.
Greater take-up of occupational pensions
Many people looking for ways to cut household expenditure and ease financial pressure see cancelling pension contributions as a quick-saving fix.
The latest research from the Pensions Policy Institute shows that while the number of private sector workers canceling pension contributions is increasing, this is not the case with public sector workers.
Public sector employees are more than twice as likely to be members of an employer-sponsored pension scheme, 85% compared with 45% of private sector workers.
What are public sector pension schemes?
Public sector schemes are pension schemes run and paid for by the Government for the benefit of public sector employees
Many expected public sector pensions to decline following government reforms but new employees in the public sector can still join final salary schemes which are worth around 21% of their salary, according to the Pensions Policy Institute.
Which? Money research head Paul Davis said: ‘The Pensions Policy Institute figures demonstrate that if employees are offered a good pension deal they’ll take it up. If more employers were to improve the pension deals they offer and provide advice to their workforce it would go someway to ensuring more people will be adequately provided for in their retirement.’
Which? offers expert advice on pensions & retiring
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