UK Pensions Eroding Further
It has long been clear that pension providers, be they the official Ponzi scheme or the corporate versions, will not be able to deliver on their promises. Now more and more providers are switching from adjusting for inflation by the higher Producer Price Index (PPI) to the lower Consumer Price Index (CPI). The difference is generally about 0.5-1%, making a massive difference already over a shorter period of time.
FT.com highlighted this yesterday in an article called ‘Alternative RPI could hit pensions’, that I have linked to below.
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Millions of people saving into private sector pensions could still face cuts to their retirement income as the door opens for schemes to use a new, less generous inflation measure. Currently, many schemes in the private sector…