Jump to content
House Price Crash Forum
Sign in to follow this  
South Lorne

Private Pensions To Be Slashed

Recommended Posts

Private pensions to be slashed by 25%: Rule changes 'could hit 12million'

Pensions will link to less generous CPI rate of inflation

Headache: Plans to link pensions to the CPI rate of inflation, rather than RPI, will lead to a big cut in retirement income for around 12million private sector workers.

Around 12million private sector workers and pensioners should brace themselves for a cut of up to 25 per cent in their retirement income, experts warned last night.

The Government is expected to announce proposals today to scrap a crucial link which means the value of their pension payments rises significantly every year after they have retired.

At present, the annual increase in their final salary pension is linked to the retail prices index measure of inflation.

http://www.dailymail.co.uk/news/article-1336665/Private-pensions-slashed-25--Rule-changes-hit-12m.html

Share this post


Link to post
Share on other sites

The government has actuallty backtracked a bit, and seems now like it's not going to override scheme rules where the rules specifically refer to RPI.

Share this post


Link to post
Share on other sites

....although plenty of noise ...FSPs in the Public Sector are untouched to date....but it's OK ....the taxpayer funds them.... :rolleyes:

Hardly untouched with reference to CPI vs RPI for future indexation

http://www.telegraph.co.uk/finance/financetopics/budget/7847707/Budget-2010-Blow-for-public-sector-workers-as-move-to-CPI-link-saves-6bn-for-Government.html

and this decision for FSPs in the Public Sector is ammunition for those who wish to change private sector FSPs in the same way. Who might they be?

Share this post


Link to post
Share on other sites

Hardly untouched with reference to CPI vs RPI for future indexation

http://www.telegraph.co.uk/finance/financetopics/budget/7847707/Budget-2010-Blow-for-public-sector-workers-as-move-to-CPI-link-saves-6bn-for-Government.html

and this decision for FSPs in the Public Sector is ammunition for those who wish to change private sector FSPs in the same way. Who might they be?

.....there are 12 million quoted ....but it won't reduce the tax payout ....in fact it will reduce the tax take.....as for the Public Sector pensions ....remember the coalition have been "U Turn Charlies" to date.... :rolleyes:

Edited by South Lorne

Share this post


Link to post
Share on other sites

...game over....short term U Turn..... :rolleyes:

Pension inflation changes will not be forced through

Changing from RPI to CPI could make a big difference to pension values

Such a change would have cut the value of people's pensions because they would have grown more slowly than before.

The change has already been introduced for the state and public sector schemes from next April.

But Pensions Minister Steve Webb said he would not force private sector pension schemes to do the same.

"We do not plan to grant schemes a modification power, to make it easier to use CPI where they do not already have the power to amend scheme rules," Mr Webb told MPs.

http://www.bbc.co.uk/news/business-11948861

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.