By . Becky Barrow . More than 12,000 retired public sector workers enjoy pensions worth 'in excess of £50,000 a year', a report reveals today. Of those, nearly 150 have retired on incomes worth more than £100,000 a year. The research lays bare the pensions enjoyed by high-earning members of the state sector  workforce – dubbed Britain's 'pensions aristocracy'. The study also claims that the true cost of pension promises made to current public sector workers is a massive £1,700billion – around £600billion higher than the Government's own estimate. A report has laid bare the pensions enjoyed by high-earning members of the state sector  workforce . It is the equivalent of an extra £35,000 bill for every tax-paying household in the country with occupants below retirement age. The report was written by former Bank of England economist Neil Record, and compiled by the Intergenerational Foundation, a Left-leaning think tank that examines fairness between the generations. Angus Hanton, co-founder of the Foundation, said: 'The relationship between those making these promises today and those who will pay later is one-sided.' He warns the bill for pensions, which he warned is 'an enormous Ponzi scheme', will be 'paid for in the future largely by our children and grandchildren.' This is because there is no  precise pot of money set aside for the majority of public sector workers' pensions, such as those in the NHS, teachers and civil service. Instead, it relies on new workers joining the State workforce and  paying into their pension to help pay the retirement benefits of those who have retired. The report was compiled by former Bank of England economist, now a multimillionaire, Neil Record . Retired state workers are 'rewarding . themselves huge pensions with scant regard to the interests of their . younger colleagues, many of whom will be funding their older colleagues' pensions until 2050,' according to the report. Mr . Record added: 'Rewarding an older generation at the hidden and . unrecognised expense of a younger generation until it is too late is . morally indefensible.' To . get a pension worth £100,000 a year, a private sector worker would need . to build a pension pot of around £2.8million, assuming he or she wants . to retire at the age of 65  and have a pension which increases with . inflation every year and passes to their spouse if they die first. Laith Khalaf, head of corporate research at the financial advisers Hargreaves Lansdown, said: 'Few people could ever dream of having a pension of this size.' By comparison, the average  pension pot is worth just £35,000, and pays out only £1,200 a year. Jonathan Isaby, chief executive of the Taxpayers' Alliance campaign group, said: 'The scale of the public sector pension liability is enormous, much scarier than the Government lets on. 'The situation has rapidly deteriorated over the last decade and will only get worse with an ageing population, meaning our debt mountain will continue to grow.' Since 1997, the number of private sector workers with a 'defined benefit' pension has collapsed from 4.9million to just 1.7million today, according to the Office for National Statistics. A 'defined benefit' pension is one which guarantees to pay a certain pension to a worker when he or she retires, such as a final salary pension or a career average pension. The Coalition has also dramatically clamped down on public sector pensions. As a result, workers must pay more into their pension and retire at a later age – but still enjoy far more generous pensions than the majority of private sector employees. A Treasury spokesman said: 'The Government's reforms to public service pensions will save £430billion over the next 50 years and ensure they are affordable and sustainable in the long-term. 'Reformed public service pensions will remain among the very best available, whilst rebalancing the costs more fairly between employees, employers and the taxpayer.'
Study claims the true cost of pension promises is a massive £1,700bn .
That is around £600bn higher than the Government's own estimate .
Report was written by ex Bank of England economist Neil Record .
He warns the bill for pensions is 'an enormous Ponzi scheme'
By . Becky Barrow . More than 12,000 retired public sector workers enjoy pensions worth 'in excess of £50,000 a year', a report reveals today. Of those, nearly 150 have retired on incomes worth more than £100,000 a year. The research lays bare the pensions enjoyed by high-earning members of the state sector workforce – dubbed Britain's 'pensions aristocracy'. The study also claims that the true cost of pension promises made to current public sector workers is a massive £1,700billion – around £600billion higher than the Government's own estimate. A report has laid bare the pensions enjoyed by high-earning members of the state sector  workforce . It is the equivalent of an extra £35,000 bill for every tax-paying household in the country with occupants below retirement age. The report was written by former Bank of England economist Neil Record, and compiled by the Intergenerational Foundation, a Left-leaning think tank that examines fairness between the generations. Angus Hanton, co-founder of the Foundation, said: 'The relationship between those making these promises today and those who will pay later is one-sided.' He warns the bill for pensions, which he warned is 'an enormous Ponzi scheme', will be 'paid for in the future largely by our children and grandchildren.' This is because there is no  precise pot of money set aside for the majority of public sector workers' pensions, such as those in the NHS, teachers and civil service. Instead, it relies on new workers joining the State workforce and  paying into their pension to help pay the retirement benefits of those who have retired. The report was compiled by former Bank of England economist, now a multimillionaire, Neil Record . Retired state workers are 'rewarding . themselves huge pensions with scant regard to the interests of their . younger colleagues, many of whom will be funding their older colleagues' pensions until 2050,' according to the report. Mr . Record added: 'Rewarding an older generation at the hidden and . unrecognised expense of a younger generation until it is too late is . morally indefensible.' To . get a pension worth £100,000 a year, a private sector worker would need . to build a pension pot of around £2.8million, assuming he or she wants . to retire at the age of 65  and have a pension which increases with . inflation every year and passes to their spouse if they die first. Laith Khalaf, head of corporate research at the financial advisers Hargreaves Lansdown, said: 'Few people could ever dream of having a pension of this size.' By comparison, the average  pension pot is worth just £35,000, and pays out only £1,200 a year. Jonathan Isaby, chief executive of the Taxpayers' Alliance campaign group, said: 'The scale of the public sector pension liability is enormous, much scarier than the Government lets on. 'The situation has rapidly deteriorated over the last decade and will only get worse with an ageing population, meaning our debt mountain will continue to grow.' Since 1997, the number of private sector workers with a 'defined benefit' pension has collapsed from 4.9million to just 1.7million today, according to the Office for National Statistics. A 'defined benefit' pension is one which guarantees to pay a certain pension to a worker when he or she retires, such as a final salary pension or a career average pension. The Coalition has also dramatically clamped down on public sector pensions. As a result, workers must pay more into their pension and retire at a later age – but still enjoy far more generous pensions than the majority of private sector employees. A Treasury spokesman said: 'The Government's reforms to public service pensions will save £430billion over the next 50 years and ensure they are affordable and sustainable in the long-term. 'Reformed public service pensions will remain among the very best available, whilst rebalancing the costs more fairly between employees, employers and the taxpayer.'
cost of pension promises made to current public sector workers is a massive £1,700billion – around £600billion higher than the Government's age. The report was written by former Bank of England economist Neil Record, and compiled by pay later is one-sided.' He warns the bill for pensions, which he warned is 'an enormous Ponzi compiled by former Bank of England economist, now