£700 billion Pensions hole !
Politics / Pensions & Retirement Feb 18, 2005 - 07:11 PM GMTBy: John_York
Talk about a pensions black hole !
The Public sector pensions bill is estimated at £700 billion pounds which is £300 billion more than the previous published estimate of £380 billion.
To make matters worse, the TUC are organising a series of events across the UK over plans to raise the retirement age of nurses, teachers and other public workers.
President of the British Chambers of Commerce Bill Midgeley said: "The cost of public sector pensions currently stands around £700bn. This is a massive weight on the shoulders of existing and future taxpayers." He urged the government to go further and raise the level of pensions contribution that employees make.
The size of the pensions liability cannot be over emphasised which is twice the size of UK's national debt of £375 billion.
The primary reason for the rise in council tax bills recently has been to cover the pension promises to council workers which are NOT even part of the £700 billion deficit !
All of this does not bode well for the value of future assets including shares, bonds AND housing etc....
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