Category: Contractor Industry News

Public sector benefits are likely to be reduced in the coming years, according to one investment expert.

The end seems to be near for public-funded pensions, said Laith Khalaf, pensions analyst at Hargreaves Lansdown.

He pointed out that both the Conservative and Liberal Democrat election manifestos pledged to look at public sector pension schemes and how they are funded.

"Over the next few years, I suspect we will see reductions in public sector pension benefits and possibly a review into public sector pensions [and] into the whole system," Mr Khalaf commented.

Benefits promised to people from now on are not likely to be as generous as those given to workers now retiring, the expert continued, highlighting the need for public sector contractors to make additional retirement provisions.

Chancellor George Osborne has said the government plans to "restrain the cost of public sector pay and pension" and review spending plans.

Posted by Sarah Putt