In these four schemes, the average pension payout has not increased massively, from £8,659 in 2000 to £10,008 in 2020, the NAO found. However, according to a National Audit Office report in 2021, their total pension payments have exploded to £28.5 billion. This is mainly due to an increasing number of retirees and an expansion of pension rights for early leavers and women. it found.
However, these costs weigh on the British balance sheet. In total, public sector pension liabilities in 2020 were worth more than £2 trillion by the government’s accounts, almost twice the value of all of its bonds.