LPI removal would help smaller pension pots, says ABI

Following the DWP announcement yesterday by Malcolm Wicks MP – suggesting Limited Price Indexation may no longer be compulsory on money purchase schemes, the ABI says proposed changes could be in part the result of its work with the DWP to reform schemes for the benefit of consumers, arguing it would help encourage more people to join pension schemes. Joanne Segars, head of pensions and savings, says: "Removing the various layers of compulsory indexation on DC pensions will reduce the number of annuities that have to be bought from a maximum of six to two. This will make it much easie...