Can you afford to put £1,600 into your pension this year?

Michelle McGagh

Did you contribute £1,600 to your pension last year? Thought not. But that's what public sector pensions could cost each household in the UK if the government fails to rein in spending.

Future costs of public sector pensions throw up some frightening numbers. The most recent is £41 billion a year, as calculated by pension expert Michael Johnson for the Centre for Policy Studies. That £41 billion is the equivalent to £1,600 a year for every household.