Millions of retired retirees are facing a blow of £ 7,000 for failing to prove their inflation benefits.
Britons who have worked in the private sector will suffer from a ceiling on increases, which means they will not keep up with rising prices.
The shortfall will cost retirees an average of £ 400 this year and £ 7,000 for the rest of their lives, while saving the companies sponsoring the schemes around £ 30 billion. Almost all defined benefit schemes (DB), which pay a certain amount each year based on length of service, raise incomes by a maximum of 5 percent per year, even when inflation is higher. The ceiling was reduced to 2.5% in 2005. Prior to 1997, there was no requirement for
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