The cost of public pensions

Public sector pensions are set to cost taxpayers £1,025 billion - or £40,000 for every household over the next 20 years - according to figures released today.

Research by the Institute of Economic Affairs has also found that 8,449 NHS employees have retired on an annual pension of at least £33,000 - equivalent to a pension pot of about £1 million.

Last year it emerged that nearly 4,000 retired civil servants had pension pots of more than £1 million.

Corin Taylor, the research director of the TaxPayers' Alliance, which uncovered the figures using the Freedom of Information Act, said: "Unfunded public sector pension liabilities are reaching unsustainable levels. Every household will have to pay up to £40,000 over the next few decades to fund gold-plated retirement benefits for public sector employees.

£1 trillion cost of public pensions (Daily Telegraph, 26 February 2008)