Public and Commercial Services Union
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Calculator provides stark prediction of pensions future for many
Millions of workers, who were already facing meagre average annual pension income of less than £5,000 in many cases, will have to work longer and pay more for far less in retirement. The calculations used in the pensions calculator are taken from government proposals and the Hutton report on which the government's proposals and the Hutton report on which the government's proposals are based.
The calculator provides members of the three main civil service schemes: Classic, Premium and Nuvos with estimates of how much the government’s proposed pension changes could cost them between now and their retirement. Many people face a doubling or tripling of contributions and might have to work longer because of the raising of the pension age from 60 to 65 and then to 68.
A 30-year-old member of the Nuvos scheme currently earning £24,500 will have to work for three years longer, pay an additional £61.25 a month and lose £309,840 over a 20-year retirement.
A 41-year-old member of the Premium scheme earning £21,250 who has made 15 years of contributions will have to work for an extra seven years, pay £53.13 more a month and will lose £19,266.67 over 20 years through CPI indexation. She will lose £113,793.75 if she retires at 60.
A 55-year-old who has paid into the Classic scheme for 19 years currently earning £30,000 will have to work for five years longer, pay an additional £75 per month, and will lose £56,250 if he retires at 60.
PCS general secretary Mark Serwotka said: “These figures show the scale of the pensions robbery facing millions of people across the UK.
Many people on low incomes will lose money they can ill afford to each month as their contributions could more than double or even triple. Thousands of people will also lose out over because of the switch from RPI to CPI indexation.
“The cuts are unnecessary; our pension schemes are affordable and sustainable. The proposed huge increase in contributions will go straight into the coffers of the Treasury to pay off the deficit caused by the finance sector.
“We need action to stop this pensions robbery, to stop the job cuts, and the pay freeze. There is an alternative: create jobs to grow the economy and collect the £120 billion in tax evaded, avoided and uncollected each year.”