Independent Financial Advisers

Pension pots shrunk by valuation switch

December 30 2011, by Stewart Hood - (Arcadia Financial Solutions) PENSION pots have been reduced following a Government switch in the way they are valued and a High Court failure to block it. The switch from the retail price index (RPI) to the consumer price index (CPI) came into effect in April, after being announced by Chancellor George Osborne in the June 2010 emergency budget. The move will save the Government £6billion a year on public sector pensions. Two groups, mainly consisting of unions, launched the legal action claiming the move was unlawful, but this month (DEC) the High Court rejected the argument. This decision has implications for private sector pensions too and financial advisor Stewart Hood, director of the Plymouth office of Arcadia Financial ...