Academic

BRITAIN DEALS WITH ITS OWN PENSION PROBLEMS: Millions face 25% cut in pensions as inflation rules f?

By Glenn Reynolds

BRITAIN DEALS WITH ITS OWN PENSION PROBLEMS: Millions face 25% cut in pensions as inflation rules for final salary schemes are changed. The “25%” cut isn’t immediate, though: “A scheme member on a pension of £10,000 a year would get £25,270 a year in 20 years? time if the payments were linked to RPI. But using CPI means the same pension will be worth just £18,875 a year after two decades in retirement, according to calculations by investment company Hargreaves Lansdown.”

Full post as published by Instapundit.com on August 11, 2010 (boomark / email).