Annuity experts relieved as RPI unchanged

clock

Annuity experts have welcomed the Office of National Statistics' (ONS) surprise decision to keep the current measure of inflation.

The ONS had consulted on changing the calculation of the Retail Prices Index (RPI) to bring it in line with the Consumer Prices index which tends to be lower. Commentators feared any change would lead to pensioner detriment as many annuities are linked to RPI. Alan Higham, chairman of Annuity Direct said the proposed change would have meant an inflation rate decrease of 0.9%. This would have wiped over 10% off the value of a 65 year old's pension. LV='s head of pensions, Ray Chinn said any change would have led to a huge reduction in pensioners' buying power and quality of life. He...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

The role of annuities: 'Placing the onus on savers to act autonomously is improvident'

The role of annuities: 'Placing the onus on savers to act autonomously is improvident'

'Savers have reacted positively to this so-called "flex-then-fix" approach'

Matthew Morris
clock 24 September 2025 • 3 min read
A refreshed conversation on retirement – the road to a rewarding later life

A refreshed conversation on retirement – the road to a rewarding later life

‘Retirement is not a once-and-done process’

Lorna Shah
clock 05 September 2025 • 4 min read
UK borrowing costs rise as gilt yields surge to near 27-year high

UK borrowing costs rise as gilt yields surge to near 27-year high

30-Year gilt yields rose to highs last seen in 1998 on Monday

Linus Uhlig
clock 19 August 2025 • 2 min read