Index link all pensions to nominal GNI (or GDP) per capita

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Index link all pensions to nominal GNI (or GDP) per capita

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All state and public sector (and ideally private) pensions should be index linked to GNI per capita.

The reasons for this are:-

(1) To ensure pensions track the economy as a whole (upwards or downwards).
(2) To stop the perpetual arguments (of political convenience) of whether to link to CPI, RPI, earnings or a fixed rate.
(3) To protect older preserved rights from erosion based on newer costs.

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