Private sector pensions hit during economic recovery

Workers in the private sector will have to accept a £4.75bn reduction in their pensions as the country tries to recover from the recession, while public sector workers’ retirement funds will escape cuts, the Daily Mail has reported.

Limits will be placed on private sector pension contributions in order to slow their sometimes rapid growth, which could save up to £1bn a year for the government.

The report added that a National Audit Office survey revealed that the annual cost of public sector worker pension schemes was £19.4bn, with the public contributing £14.9bn.

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