New potential Stealth attack on Pensions!

Stealth attack as RPI calculation is changed
There is a proposal to change the way the Retail Price Index (RPI) is calculated.
The RPI is widely used to determine inflation and the increases of index-linked pensions, savings rates and pay rises. Any change could prove to be the most damaging of stealth attacks on pensioner’s incomes.

At present a 65-year old man cashing in a £100,000 pension pot would get an annual income of around £3,3665 rising to £6,560 when he reaches 85 if it is increased in line with RPI each year. If the changes go ahead his pension would only rise to £5,500 in 20 year’s time costing him around £10,000 over the 20-year period.

Both RPI and CPI are "adjusted" supposedly to take into account “technical improvements” to goods, mainly consumer electronics, to reflect the fact that a 2013 TV is far superior to one from 1990, so the statisticians reduce the current TV price. These "adjustments" make the overall rate of reported inflation lower than it would otherwise have been. But there is no adjustment the other way, to take account of worsening quality. The statistics are changed when we pay less for more, but not when we are paying more for less, as is the case with flimsier clothing for example.

Why do we believe the doctored 'truth' our government departments release