With the cost of living crisis and inflation at a relative high, we have provided the Q&As and example below to help with any questions you may have regarding how your pension might increase each year.

Will Rothesay increase my pension in line with inflation?

Your pension benefits and, if applicable, any pension increases were secured with Rothesay by your previous pension scheme or insurer. The way your pension increases are calculated is set out in your policy document. Each year this may be more or less than inflation.

Will my pension increase each year?

Please see your policy document for details of how and when your pension increases each year.

How are my pension increases calculated?

This is set out in your policy document.

It is common for pension increases to be linked to an inflation measure such as the increase in the Retail Prices Index (RPI) or the increase in the Consumer Price Index (CPI), and often the increase will be subject to a maximum percentage rise such as 5% per year.

For any part of your pension where there is a maximum, if the inflation measure used to calculate the increase is more than the maximum, the increase applied to that part of your pension will be restricted to the maximum - please see the example below.

Where can I get additional help or support?

If you have further questions on how your pension might increase, please contact us. If you do not have the contact details to hand of the Rothesay team administering your policy, please use the search function on our Contact page.

For additional help and support on the cost of living crisis, please take a look at our Cost of living support page.

Pension increase example

This example assumes that CPI and RPI are greater than 5% over the year.

The table below illustrates the increases that would be applied on the different parts of your pension (sometimes referred to as ‘components’ in your policy document).

Benefit component Annual increase rate per your policy document Increase applied Current Amount Amount after increase
Pre 88 GMP Nil 0% £100 £100
Post 88 GMP The percentage change in CPI, subject to a minimum increase of 0% and a maximum increase of 3% per annum 3% £100 £103
Pension in excess of GMP before 5 April 1997 Fixed 3% per annum 3% £200 £206
Pension in excess of GMP between 6 April 1997 and 5 April 2006 The percentage change in RPI, subject to a maximum increase of 5% per annum 5% £200 £210
Total pension     £600 £619