Spending Review: Millions face cut in value of workplace pensions - Sound scarier than it looks

[stephen500]

https://www.bbc.co.uk/news/business-55070292
Perhaps Robert T would be kind enough to review this news story.
I think on payment of pension, my payment increases are now linked to CPI (section B)
Personally I can't see much difference between CPI and this new measure of inflation to be used for increases after 2030.
But as usual, it looks like women will be hurt the most, even if by not very much.

[RobertT]

It'll affect section C pensioners more because their pensions currently increase by RPI and that is generally quite a lot higher, relatively speaking than CPI(H).

The difference between CPI and CPI(H) isn't too big, but CPI(H) is still generally a bit lower, so that will a fairly small impact on section B pensioners.

There's a graph showing RPI, CPI and CPI(H) since 2006 here: https://www.hymans.co.uk/insights/resea ... -pensions/

It might not sound too important but the main problem with this change will be the compounding effect it has on our pensions - over 20 or 30 years of retirement a section C member in particular, could receive a lot less overall.

[heapsy]

Yet another change that, for many, will go unnoticed.

[JKSmudge]

The 'good news' AFAIK is that it is not until 2030, there had been speculaation on it being implememented by 2025....

[FAB]

Yet another change that, for many, will go unnoticed.

It's like when Section B went from RPI to CPI in 2010. I met a retired postie in .Section B who was puzzled as to why he didn't get an increase in 2016 (when CPI was a minus figure). While a fellow postie he knew got a 0.8% increase who was in Section C. He told me it must be a disability allowance! So yes very few posties will notice..

[heapsy]

The 'good news' AFAIK is that it is not until 2030, there had been speculaation on it being implememented by 2025....

Yes, but it will still come in and make a difference to our retirement income. Workers are getting shafted all the time. No wonder many just don't bother putting money away, the government are killing the incentive to save / invest for the future.