Newspaper article The Evening Standard (London, England)

Raid on Final Salary Pensions 'Is Only Way to Plug the Black Hole'

Newspaper article The Evening Standard (London, England)

Raid on Final Salary Pensions 'Is Only Way to Plug the Black Hole'

Article excerpt

Byline: Jonathan Prynn Consumer Business Editor

EXPERTS today defended the Government's move to slash private-sector final salary pensions which will see millions of people lose up to 25 per cent of their retirement income.

Pensions minister Steve Webb has called for the schemes to rise each year in line with inflation as measured by the consumer prices index (CPI), rather than the retail prices index (RPI).

The move is likely to cost workers hundreds of pounds a year over the course of their retirement, as CPI is generally lower than RPI.

But experts warned the schemes would have had to be scrapped entirely had ministers not stepped in.

Bob Bullivant, chief executive of retirement advisers Annuity Direct, said: "If you take a scheme members' view then of course they are not going to be very happy. But if you take a global view then it will make things better because it will help the deficits in final salary schemes. They will be more likely to be able to fulfil their liabilities and less likely to fail and fall on the Pension Protection Fund. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.