Defined Benefit  

University staff could lose half their retirement income

Mr Hamilton agrees with Mr Otsuka on the fact that looking at the total pension benefit – including state pension and savings already built up – shows a smaller gap.

However, he said that this analysis will always depend upon on the assumptions about investment returns achieved and what income is assumed after retirement, and if some of the assumptions change the result will be different.

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An analysis recently conducted by First Actuarial, which compared the pension of a lecturer starting work today under the new proposals for the scheme, concluded that staff could be £200,000 worse off in retirement.