Average Workers Face Longer Pension Contributions Than MPs

An analysis by investment firm AJ Bell reveals that average workers must work significantly longer than MPs to secure similar retirement income, with an average worker earning £37,430 needing to work 52 years compared to just 20 years for an MP. MPs benefit from taxpayer-funded, gold-plated defined benefit pensions, which provide guaranteed and inflation-proofed retirement income, while such schemes are increasingly rare in the private sector, where most workers rely on defined contribution pensions. For instance, an MP can accrue a pension worth £367,000 in just 10 years, translating to an annual income of £17,911, whereas it would take an average worker 39 years to achieve the same. Critics argue this disparity distances MPs from the financial realities ordinary pension savers face. The situation is expected to worsen as planned changes to inheritance tax will affect defined contribution pensions but not the pensions enjoyed by MPs. Experts emphasize the need for awareness regarding the substantial gap in pension provision between different sectors.