Just to reassure some of you:
I retired from the RAF in 1997 at the age of 41. I went for a Resetlement Commutation which reduced my pension from approx £9500 to £7346 & gave me a £44,000 lump sum instead of £24,000 (to pay my mortgage off). Obviously, the value of £7346 in 1997 to what it buys in 2011 has had a dramatic effect this year! I smoke, I drink & like expensive cars!
It was (despite the monthly watching of the pennies) the best thing I ever did. I don't have any spare cash until December but have a house that I own outright & currently for sale for £450,000 to move abroad to die in penury (
)
When I see/read about the "poor" Civil Servants striking today my heart weeps for them (not).
The good news is that in 7 days time I am 55. The original £9500 pension is restored & the RPI/CPI index linking is backdated & applied from 1997. My pension now becomes £14,586 (forecast obtained from Xafinity) in December with a 5.2% increase on that in April 2012.
Happy days.
