Originally posted by minestrone
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My wife works for the local city council and on her 50K she pays 500 after tax into her pension.
Over the last 20 years at 5% that would give her in the order of 225K. her pension if she took it now would only be 14K !!!!
However this money is effectively an employee subsidy to the council as it doesn't go into a pot as the council use it, much like NI.
If the council went over to a traditional big company pension where both employer and employee both paid into a pot that the council couldn't use then wage costs would increase by 20%.
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