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Managing my money
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7.2.1 Moving to average salary pensions

In early 2014 most employees in the public sector were still in a defined benefits pension scheme with the promised pension based on final salary. By 2015 their future benefits will instead be based on a career-average structure (Gov.UK, 2014).

How do you think such a switch could help to reduce the cost to the government of providing pensions?

Figure _unit7.3.2 Figure 6 Salaries and pensions, based on a 40-year career

Which workers might gain and which might lose from such a switch? To help you identify winners and losers, take as an example an established profession such as teaching.