Company leavers worst hit by RPI/CPI switch

In July, the coalition Government announced from 2011 it would link occupational pension payouts to the CPI instead of the RPI inflation measure. However, some industry figures have claimed this switch could cost pensioners up to a quarter of their pension income. Andy Tully, senior pensions policy manager at Standard Life, says 25% is "an extreme scenario" but in some cases losses of this size are possible. He warns the biggest issue could arise when someone leaves a company, as their benefits are frozen at the time of their departure.   "If they change to link to the CPI that ...