I received today my personalised "quote" from the BBC under which I may, if I am interested, forego inflation proofing on some of my pension in exchange for a higher level of pension from April next year. I was surprised at the size of the immediate uplift I am being offered - nearly £3,000 a year extra, for abandoning inflation proofing on just 20% of my pension (the bit that is eligible for this exercise). However as I plan to live long enough to make a loss by taking up the offer, I shall ignore it. What about you?

John W,
You may not like Mr Osborne but there is no need to be so offensive.

Ok, I've had my personalised quotation and I've been wrestling with the figures and possible future scenarios for days and sleepless nights!!!  

So many ifs, buts and maybes. I'm coming to the conclusion that to accept the offer is obviously a punt as there are so many variables in play.

But to fully round my discussions out, can anybody tell me what happens to the current index linking if deflation occurs and RPI goes into negative territory ?

Ggggggrrr wish I'd never been sent the damn thing.

Bob

Thanks for the reply. Something else to add to the mix.

I've been offered a 26% uplift from April on my current pension. It's tempting but I keep factoring in all the "unknown variables" and I'm wobbling like jelly on a plate.

I'm 63 and probably at the younger end of the spectrum of the Old Benefits club so with any luck I could go on for quite some time Which is why I'm sure the Scheme would love me to sign up.

Decisions, decisions !!!

I too spent about an hour talking to Chase de Vere this morning. I also had done some maths before the talk. They couldn't really advise me, I discovered. It was really down to advising me on the risks.

I stand to get about a £5300 lift on the pension, but about half of my existing pension would still be eligible for the annual rise. I don't get my state pension until next year (at the new rate, whatever that might be in my case).

I had worked my maths on 2% inflation, which gave me a "cross over" point in about 12 years time. But by that time I would have "accumulated" about £35,000 more over that period compared to the "standard" BBC pension. That is the compound difference between the existing pension and taking the PIE option.

So it really boils down to, do I want extra money to enjoy now while still fit and active?

I could also take the PIE option and save the money to have a lump sum available for the future.

Not an easy decsion, when nobody can know the future!!