Madam, – If someone reaches the magic million in their pension fund, they have reason to be pleased. Many who have achieved this psychological landmark have worked hard, established companies and employed people who in turn paid tax and PRSI and probably saved some of their income for a pension based on what they have saved and not what they are “entitled to”. A lot of pain and hard work will have gone into the savings made to build up a pension fund.
These people have generated wealth for this country and put some aside for themselves. How much wealth has a senior civil servant in the protected echelons of government ever created? Zero.
With current annuities at about 4 per cent, one million will buy a pension of about €40,000 at 60, a nice income in retirement, upon which income tax will be paid. It’s about what an average teacher might expect to retire on if they had served their time and a lot less than what a senior civil servant or retiring judge or Minister will receive. According to IBEC this week, it’s only €5,000 more than the €35,000 gross equivalent of the social welfare “package” a couple with two children on social welfare receive.
This is why those who are saving and trying to fund our own retirement are sick of hearing about how hard-hit the public sector is with pay cuts and pension cuts. Public sector pay and pensions, in particular at the senior levels of management, are to many of us quite absurd for a country of our size.
The private sector see no end to the gluttony of the protected golden circle lapping up the cream. – Yours, etc,