Axa research shows disparity between public and private pensions

New research from Axa found that six in 10 people believe it is unfair that public sector employees generally receive better pensions than their private sector counterparts.

The research also highlighted that 44% of public sector workers agree.

Findings show that a 25-year-old woman working in the private sector would have to contribute nearly a quarter of her annual salary every year to receive a pension on par with her public sector counterpart.

Other findings include:

•59% are concerned they will not have enough money to retire.

• 56% said their pensions will be an important election issue

• 36% want the party leaders to address their plan to tackle the pension inbalance in the television debate.

Paul McMahon, managing director of Axa Corporate Benefits, said: “There is widespread public policy debate acknowledging that something needs to be done about the rising cost of public sector pensions, but very little detail has yet emerged on how this might be addressed.

“Axa’s research confirms that voters are looking for direction from the main political parties on what solutions they can offer to achieve sustainable funding of pensions in the public sector and, at the same time, to achieve greater equity in the pension provision people will receive when they retire.”

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