The majority of people in the UK do not know what the impact of the switch from linking defined benefit (DB) pension schemes from RPI to CPI, Aon Hewitt says.
In July, the coalition government announced from 2011 it would link occupational pension payouts to the CPI instead of the RPI inflation measure. The switch took place in mid-October when CPI was 3.1%, affecting pension payouts from April 2011. Aon Hewitt's research found 76% of workers have either underestimated or do not know about the impact of the switch, which could see some people lose 25% of their pension income between now and retirement. Only 10% of respondents felt they had enough information from the government on the changes, whilst just under a quarter say the switch w...
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