Experts warn change to pension scheme inflation rules could cut final payouts by 25 per cent

Proposed government changes to private pensions will be a "nightmare for millions", experts are warning. The government revealed plans to link pension payments to the Consumer Prices Index (CPI) instead of the traditional Retail Prices Index (RPI) last month.  CPI is generally lower than RPI as it does not include housing costs. Pension experts on an online forum called Mallowstreet, say pension figures calculated with the RPI could reduce payouts by a massive 25 per cent and will prove difficult for employers to implement.