That article is a hatchet job. In this example, the public servant has contributed to their pension for 40 year as well as their PRSI contributions. They are compared to someone who has never contributed to a private pension in their life, just their PRSI.
Why not compare what the situation would be if they had contributed 6.5% of salary to a defined contribution pension for 40 years?
- Just worked out if a private sector worker starting on €20,000 a year, invested 6.5% of their salary for 40 years, they would have €322,621 at the end. This assumes growth of 6% per annum and a pay increase of 3% each year.
It also highlights the benefits of being in a union, a body that a lot of private sector workers won't pay for.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
First I will deal with the Union Issue you brought up ,
Private sectors workers in a union Are second class members when it comes to the golden goose,
In the public sector if there was any move on pensions the unions would be shouting from the roof tops The same unions never ever gave a dam
for the private sector worker, The LABOUR party never gave a dam about the private sector worker
The Labour party and there Unions only ever seen the private sector workers as a rich seam to mine for there own benefit and FF/FG know this so they never had to worry about how the treated the private sector worker,
If you want proof of this Just look at the PRSI public service up until 1995 total stopped from payroll 1,96%
now look at the Private sector sector average PRSI stopped up until the USC came close to 20% of payroll
FF/FG with LABOURS help set about increasing the age to 68 for the Private sector worker who seen 20% of payroll taken in PRSI and at the same time give supplement payment to another Group paying the same PRSI to match the people paying 1.96 PRSI,
Private sector workers don't need to join a Union the need to find a party other than FF/FG and Labour to vote for,
Then you will see FF/FG LABOUR types of this world turning on the SBarrets of this world,
My late father always voted for FF but I heard him say many a time if the ever get cornered to survive they would eat there own,
You will find most of the people who hold a views like yours pay 4% PRSI self employed Rate and just in case you don't know it only came in to force in 1988,go check,
There was not a peep out of the unions in the private sector They have lots of second class members they knew will as did the labour party ,
Joan Burton was the Minister in the Department dealing with pensions, until 2016,
All of the Main political parties in Ireland Treat the private sector workers and there employers with Contempt, they just see then as an easy target to rip off every chance the get,
I don't mind them being ripped off they deserve it , I pity high earners and people who have wealth tied up in Ireland ,
The sham of voting out FF and Putting FG in and expecting things to be better for the two million private sector workers is coming to an end
The Good news is the first to be hit will be the tax relief on pensions no more easy money for the smug feeding off the golden goose , I will be sorry to see high earners getting caught But most of them think FF/FG are the God that keeps giving,
If you want to know why this is so look no further than the virgin media debate last night ,
What we seen last night was the same party but two sections one called FF and the other section Called FG both would be well aware of the un fairness of the pension system both had a hand in putting in place (SO BOTH NEW but one would never hang out the other Both joined At The Hip ,when it comes to the Private sector workers,
In fact one of the FF ministers at the time the changes were announced stated we have to increase the age because we cant afford it,
only to retire at fifty and draw her pension not a peep out of FG you will notice,
I expect FF/FG/LAB Golden circle will be very quite and let this blow over,