Potential Pension Reform Is a Nightmare

UK financial experts are determined that the changes the British Government plans to make to the pension legislation will turn pensioners' lives into a nightmare.

Let us remind that the Department for Work and Pensions (DWP) wants to link increases in private pension to the CPI (Consumer Prices Index), whereas earlier pensioners were promised to have their pensions linked to RPI (Retail Prices Index).

Commenting on the government's move, Mr. Read of British Coal pension trustees said that this represents a violation of human rights. Other industry experts, including Mr. Swan of M&G Investments and Ms. Wake of ACE Insurance have requested the government to have a full consultation period. However, DWP rejected the request by saying that the decision has already been made.

DWP spokesman claimed that CPI is the most appropriate measure to link private pensions to and, thus, no consultation is needed.

Financial experts, however, are determined that the change will result in huge savings in pension costs for UK Government.