One in five of UK population will be affected by pension changes

New research from Unite shows that 12 million people will be affected by changes to public sector pensions – that’s one in five of the population.

This is because it’s not just current public sector workers who will be hit:

  • Current pensioners will suffer from the government’s shift to the generally lower CPI inflation measure that will knock a little off the value of their pension most years.
  • People who have yet to retire, but used to work in the public sector and were scheme members, will also lose because of this change.  As with everybody with any public sector pension, their retirement income will be hit by the CPI shift.  In addition they will start their retirement with a smaller pension.  This is because what they get will be based on their past service.  The pension earned from this is updated each year in line with inflation. In future this too will use the CPI measure.

And of course we could add the many people who are dependants of public service pensioners as there will be many spouses and partners who will also receive a smaller survivor’s pension.

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