We hear from our beloved Chancellor that pay in the public sector is being resticted to a max of 1% and as far as we know this will include the Armed Forces. As you know your final pension is linked to pay & pensions each year go up by approx the same as the pay for your rank. So if in April 2011 you retired on a pension of say £10k, it stands to reason in April 2012 someone of the same rank & service will retire on £10,100. However! The person who retired in April 2011 will get an uplift of £520, (CPI of 5.2%) ok you might not get it until your 55 but these things are worked on a compound basis. So the pensioner of 2011 is better off than the pensioner of 2012. Some people are going to have to do some serious thinking. This last happened in the 1970s & people are still feeling the repercussions of it.