Long Term Stats

Figure 28 shows the Watson Wyatt index of pension increases, which is based on nearly 60 major private sector companies covering the whole spectrum of the economy. Only schemes with a minimum of 2,000 pensioners and which do not promise full indexation have been included. In total the index now represents the experience of about 700,000 pensioners. The index is calculated by weighting the increase given by each scheme for pensions in excess of the Guaranteed Minimum Pension by the number of pensioners involved. Shown on the left-hand scale are the average nominal pension increases given each year from 1984 to 2008 alongside the annual increases in the Retail Prices Index. Shown on the right-hand scale is a cumulative index of real pension increases over the whole period relative to retail prices.

Figure 29 gives the percentage increase in pensions over periods of one, five, 10 and 20 years, ending in December each year, from 1986 to 2008. On the left are shown percentage rates of nominal increases, and on the right are shown percentage rates of real increases relative to retail prices.