Annuity experts relieved as RPI unchanged

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...