We urge all members to check the PCS online Pensions Calculator to see how much more you will have to pay, work longer and receive less. The calculator can be found here.
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 PCS Pensions Calculator are taken from government proposals which are based on the Hutton report.
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. For the average worker that could mean paying an extra £50.00+ a month at a time when there is a pay freeze.
PCS General Secretary Mark Serwotka explains: “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; 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.”
For examples of the extra you may have to pay each month please below:
A larger version of the image can be found here.
The above are examples only and use DWP imposed 2011/12 salary rates. Those in the Premium and Nuvos scheme tend to lose even more. Check the PCS Web Site yourself to find out how much you could lose!
