Public versus private

An interesting comparison between public and private pensions from the Telegraph.

If a 25-year-old worker joined a defined contribution scheme — the kind used by most workers in the private sector — this year and paid in 2.7 per cent of a lifetime average salary of £50,000 a year, while their employer paid in 6.5 per cent, they would receive an annual pension of £16,023 from the age of 65.

A 25 year-old on the same pay joining a final salary scheme — most typically found in the public sector — could expect to receive £57,714.