The post you are reporting:
The press exaggerate the effect, Howard.
The CPI is sometimes actually higher than RPI.
At least people on these statutory schemes get increases, CPI or RPI - an increase is still an increase.
There are many, if not the majority, who use their pensions to purchase an annuity with no increases at all.
If you have a pension fund of £100,000 and have a choice of annuity purchase - example (the figures below are not real, just done to demonstrate a point)
£6,000 Level payment or a payment that will increase at 3% per annum starting at £5,000 - which would you choose?
It would take 7 years for the £5,000 to top the £6,000 and several years more for the total income derived to beat the level annuity. While the figures I give are 'made up' the 7 plus years to break even is pretty much in the ball park.
Bear in mind also that you will be most active and want to spend most money in the earlier years or retirement.
So please forgive me if I am not too concerned about the change to CPI, even for war widows.
