The Big Question

Peter Carter is head of product marketing at MetLife UK For employers who have been struggling in recent years under the burden of funding defined benefit pension schemes, the DWP’s announcement that it would now use the Consumer Prices Index to calculate increases instead of the Retail Prices Index is probably a very welcome one. A combination of legislation, increased regulation, rising longevity and uncertainty about rising costs have been seen as the underlying factors behind many scheme closures. The key difference between the RPI and the CPI is that RPI includes housing costs...