The rate of inflation, whether you measure it through the Consumer Price Index or the Retail Price Index, has risen beyond the level at which most pension payments are capped.

As measured through the CPI it has hit a 19-year high of 5.2%, against expectations of 4.9%. As measured by the RPI, which takes account of mortgage costs, it has hit 5.6%, against projections of 5.5%. And most pension schemes will be forced to compensate pensioners for the increase nearly in full, given that the vast majority of indexed pension payments are capped at 5%.