Public sector pensions 'are not transparent'

Public sector pensions are stuck in a "time warp", one expert has observed.

Dr Ros Altman, an independent policy adviser, noted that there is a lack of transparency in the system, as taxpayers have not been told the "true costs" associated with providing pensions for public sector workers.

She added that those paying their levies have to guarantee a retirement fund for one grouping in society, while they will not be able to afford anywhere near that level.

Dr Altman has also accused the government of using inappropriate figures when it comes to calculating the costs of the pension liabilities already built up.

This means the problem does not appear to be as bad as it is, the specialist remarked, which will see hidden costs appear at a later date for taxpayers.

Michelle Mitchell, Age UK charity director, recently stated that the default retirement age issue needs to be clarified as a clear plan for its abolition is required.