The Pensions and Lifetime Savings Association - the trade body that represents 1,300 pension schemes with 20m members - has joined the chorus of concern about the Government’s potential axing of the Retail Prices Index (RPI), the measure used to decide many annual pension increases.

Chancellor Rishi Sunak has extended the consultation on scrapping the RPI inflation measure by four months to August.

The Pensions Policy Institute has warned that a Government change to the inflation measure could cut lifetime pension income by up to 21%.

Pension consultancy Barnett Waddingham has warned that the potential axing of the RPI inflation measure by the government could have ‘seismic’ implications for pension schemes.