It’s not just the Public Sector workers

One thing that annoys me about the many cuts being made by the Coalition government, is the glee with which some people have taken them up as a good thing because they (being private sector workers) feel put upon by the recession and want to see the public sector clobbered.

Bad news for them is that the government is changing the rules on private pensions – changing the inflation factor being used to uplift deferred and taken pensions from the RPI to the CPI. As the CPI is usually lower, and does not take into account housing costs, this means that people will end up with smaller pensions.

The main people this will affect are those who have changed jobs or been moved out of a defined benefits scheme, and have some time to go to retire.