Index linked pension

Ivrytwr3

Er...of course you will be better off at 55.

The £9399 is payable IMMEDIATELY ie for me age 42.

At age 55 it wil rise in accordance with RPI.

My query was asking what would the difference be.

molerat

It all depends on the RPI each year, this year's rise was 5%, 1999 was 1.1%, next year looks like 0%. My earlier post gives a real example, using your starting figure it would have been around £13250 after 13 years for me.

1994 2.20 9399.00 206.78
1995 3.90 9605.78 374.63
1996 2.10 9980.40 209.59
1997 3.60 10189.99 366.84
1998 3.20 10556.83 337.82
1999 1.10 10894.65 119.84
2000 3.30 11014.49 363.48
2001 1.70 11377.97 193.43
2002 1.70 11571.39 196.71
2003 2.80 11768.11 329.51
2004 3.10 12097.62 375.03
2005 2.70 12472.64 336.76
2006 3.60 12809.40 461.14
2007 3.90 13270.54 517.55
2008 5.00 13788.09 689.40

Above are historical figures based on your starting figure, really is a crystal ball thing. Using 2% pa gives a fair guide.

Ivrytwr3

which works out at about extra £250 a month after tax.

Thanks all, that's all i was after, ballpark figures.