Britain has divided opinion of public sector pension dispute strikes

The strikes by public sector workers on the 30th of November brought Britain to its knees. Thousands of schools across the country were closed, and hospital operations were postponed as unions brought together thousands of workers in education, healthcare, civil service and local government to put on the biggest strike in 30 years.

Strikers were protesting against proposed changes to state pensions, which require union workers to make higher contributions and work longer before they can retire. Schools minister Nick Gibb insists that the changes are essential to keep costs down for the taxpayer, as a result of people living longer.

Public opinion over the strikes is divided, as a recent survey shows. They have the support of 38% of UK respondents. However, almost the same proportion (33%) are against the strikes, with opposition increasing with age. Supporters of the strikes say the unexpected changes in the terms and conditions of public sector employment are unreasonable. General Secretary of the Association of Teachers and Lecturers, Mary Bousted, claims the reforms "condemn teachers to pension poverty".

Critics of the strikes argue that public sector workers are guaranteed a 'gold-plated' pension deal far better than those received by many of their private sector counterparts. They claim the existing pension deal is neither justifiable nor indeed sustainable given the huge and increasing cost to the taxpayer.

It’s not just the public sector that has been hit with pension cuts, which were brought about because of increased longevity, inflation and dwindling stock market returns. In the past year, the number of private sector schemes open to new members have dropped from 27% to 17%, and 4 out of 5 final salary pensions are now shut down. The UK government has deliberately kept the state pension low to encourage aging Brits to save for their own retirement. The problem is, many are simply not saving adequately. As a result, many believe Britain is headed towards a major pension crisis.

In results from online surveys, 34% of respondents said they put money into a pension or retirement fund every month. The proportion drops to just 25% for those aged between 15-29, supporting research that many young people are leaving off saving for a pension until their 30s. Worryingly, 56% of respondents are not currently setting aside any money for the future. 21% used to save, but have stopped.

To solve the pension crisis, some dream of living abroad. In the survey, 8% of respondents said they plan to move from the UK in their retirement, with another 4% wanting to stay abroad at least part of the time, while 20% are undecided. The lower cost of living in some places makes this an attractive option. However, pensions for expats don’t increase with the cost of living, and the strong Euro means the real pension income for Brits living in the Eurozone is in rapid decline.