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Original poster

Pensions in the private sector - an impossible goal

158 replies

Newmeagain · 26/04/2026 12:13

I am feeling quite depressed about my pension and it seems to me that for most people in the private sector it is impossible to accumulate a decent pension.

it feels like we have three categories of people: people in the public sector who get really good pensions; people in the private sector with very high paying jobs; and then people in the private sector with less well paying jobs and it is this last group that have no hope.

I currently have a well paying job but for many years my pay was lower and I could not increase my contributions because I was a lone parent and had to prioritise living costs. I am in my early 50s and my pot is £135k. My googling indicates that even a £400k pot (which seems like an impossible goal) would only give me a very modest annual pension. I am single, so no one to share costs with.

OP posts:
RatFans26 · 19/05/2026 12:32

AllTheOddSocks · 19/05/2026 12:25

Quite the opposite. The current accrual rate in the LGPS is 1/49. Meaning that whatever your annual salary, you accrue 1/49th of it in pension.

So, let’s do the maths! Grin

You state you were in the LGPS for six months and accrued £6,000 in that time. Annually, you’d have accrued £12,000. Times that by 49 to get your salary for that year (alleged!) and it is £588,000.

Someone’s talking rubbish alright but it’s not me Wink

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Oh dear me!

OhamIreally · 19/05/2026 12:32

Tabarnak · 19/05/2026 12:18

It's daunting OP, and I think private pensions, while still representing good value, are not rising in value as much as they used to.

Get some forecasts from your provider, save like mad as soon as your mortgage is paid off - it's any gap between when you want to / have to stop work and state pension kicking in that is the killer.

I too am a single woman and it does make a big difference when you have almost the same major overheads but only one pension to cover it all.

I certainly do not have a big DC pension having worked in the arts / charity sector and only in the last few years of work received any employers contribution, but it is manageable.

There are also options for some such as downsizing or moving to a cheaper area once work is not an issue.

I think you’re right that there’s a big delta for those of us who are single. A couple with combined state pensions of 24K have a fighting chance at running a home and surviving together but at 12k there’s little chance.

I’m following your advice and stashing away as much as I can whilst hoping my health holds out.

Still planning a massive holiday next year though!

HarryKanesLeftSock · 19/05/2026 13:03

Apprentice26 · 26/04/2026 14:10

I worked with an incredibly dopey thick as mince, failed all their GCSEs type person in the public sector, at 20 years old they were on £31,500 a year with a local government pension that if they stick with their career in the local government will make that person more comfortable than most Oxbridge educated candidates can even dream of
The world feels a very unfair place at the moment

I don’t understand your point about ‘Oxbridge-educated candidates’?

HarryKanesLeftSock · 19/05/2026 13:13

Apprentice26 · 26/04/2026 15:35

They absolutely will. Firstly you have to remember that everybody cuts their cloth accordingly so if you’re only on £31,000 a year at the age of 20 and you remain on a adjusted for inflation and remember they do get a pay rise every year no matter what it’s not performance related
Of approximately 2 1/2 to 5%
So if you’ve always lived your life anticipating that you will retire on 2/3 of your average salary. You’ll be in an excellent position by the time you’re 55. And it’s all relative.
Appreciate not everybody joins the Public Sector from 18 or even 16
But the ones that do will be in a very good position.
I was only in the local government pension scheme for six months. And it’s worth £6000.

Edited
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remember they do get a pay rise every year no matter what it’s not performance related

Actually, the pay rises are often below inflation, and sometimes we have pay freezes. That’s from my 10+ years of working in the Civil Service, which has a very similar pay and pension system to local government.

I was only in the local government pension scheme for six months. And it’s worth £6000.

I don’t understand this. Are you saying you earned a £6000 pension pot from working in local government for 6 months?

messybutfun · 19/05/2026 13:55

AllTheOddSocks · 19/05/2026 12:25

Quite the opposite. The current accrual rate in the LGPS is 1/49. Meaning that whatever your annual salary, you accrue 1/49th of it in pension.

So, let’s do the maths! Grin

You state you were in the LGPS for six months and accrued £6,000 in that time. Annually, you’d have accrued £12,000. Times that by 49 to get your salary for that year (alleged!) and it is £588,000.

Someone’s talking rubbish alright but it’s not me Wink

Show quote history

It’s nothing to do with your math.

They said somewhere that they transferred out.

£6k pension fund might seem like a lot for 6 months’ work but in respect of funding retirement, it is neither here nor there and unlikely to pay council tax in 20 years’ time.

HarryKanesLeftSock · 19/05/2026 15:51

messybutfun · 19/05/2026 13:55

It’s nothing to do with your math.

They said somewhere that they transferred out.

£6k pension fund might seem like a lot for 6 months’ work but in respect of funding retirement, it is neither here nor there and unlikely to pay council tax in 20 years’ time.

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The local government pension is index-linked, and rises with inflation, so any pension built up whilst working will be worth the same in real terms in retirement.

BowlCone · 19/05/2026 15:57

HarryKanesLeftSock · 19/05/2026 15:51

The local government pension is index-linked, and rises with inflation, so any pension built up whilst working will be worth the same in real terms in retirement.

Show quote history

She has transferred out.

Boomer55 · 19/05/2026 16:20

MidnightMeltdown · 26/04/2026 15:27

I doubt that many nurses or prison officers will be retiring at 55 in future. Public sector pensions, like most others, are nowhere near as good as they used to be.

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They have very good pensions. However much they bleat on.

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