Public sector pensions lack 'intergenerational balance' study warns

The rise makes pension costs the second fastest growing area of economic inequality between the post-war baby-boomers and subsequent generations.

The Intergenerational Foundation reached the pension score by taking into account the cost to the tax-paying public of unfunded public sector pensions and the state pension, calculating increases for different age groups from 2000.

And in a report — seen by pensionsweek.com — to be published tomorrow has called for the government to take action to “swing the pendulum back towards intergenerational balance”.

And Jeremy Leach, joint creator of the index, said the significant factors influencing the index are public sector pension liability increases between 1990 and 1995, public sector pensions, houses prices doubling between 2000 and 2005, tuition fees, government debt and pensions from 2005 to 2011.

Other factors included in the index are unemployment, housing, education, democracy, health, income and environmental impact.

Leach added the rate of increase of these inequalities has spiked since the 2008 financial crisis.