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The government argues that the lowest paid will be protected from having to pay more – but not from the indexation switch and not from the requirement to work longer.
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Financial advisers warn that a cap on charges will force pension schemes to switch to indexation – simply replicating the performance of an index such as the FTSE100 – rather than actively managed stock picking.
By unilaterally switching the indexation from RPI to CPI, the government has already stripped up to 20% off the value of pensions at a stroke.
After 2014's experience, more and more professional investors are giving up on active management and switching to indexation strategies.
In the meantime, the position of the pension fund has improved by £2.9bn with the switch to CPI-based indexation.
The indexing was re-checked in June 2010, to ensure the correctness of indexation for 2009.
Wage indexation has made businesses uncompetitive.
Parties on the other side might push for consumer price indexation, or no indexation at all.
Drivers didn't like the indexation of the fuel excise.
Wage indexation was to be banned and high deficits punished.
But oil indexation might persist all the same.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com