Public sector pensions could cost £817bn

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Government estimates of the cost of public sector pensions are far too optimistic because they do not take proper account of trends in mortality claims a new study from the Institute of Economic Affairs (IEA).

The IEA says a realistic estimate of public sector pensions liabilities is actually £817bn, twice the current government estimates of the public sector pension nburden. The Report Sir Humphrey’s Legacy: the true cost of public sector pensions, compiled by Neil Record, chairman and chief executive of Record Currency Management and a former economist at the Bank of England, claims a realistic estimate of the unfunded public sector occupational pensions liability at £817bn, amounts to 69.4% of Britain’s gross domestic production (GDP), and is £357bn higher than the last government estimate ...

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