Individuals who have inflation-linked pensions may be £1,500 more secure by 2024 than those who have capped pensions.

All public sector employees, including nurses, teachers, members of the armed forces, and local governments get inflation-linked pensions.

Several private-sector companies offer employee benefit plans that limit annual raises to 5%.

Inflation-linked pension systems, on the other hand, are revised every April to grow in line with CPI inflation during the previous year.

These plans increased by 10.1% this year.

If someone received a £20,000 inflation-linked pension plus the £9,600 state charge in 2022/23, their income would rise by £32,620 this year.

Should inflation slow to the Bank of England's projection of 7% the next year, its value would rise to £34,903.

A capped pension, on the other hand, would climb to £31,600 this year and then to £33,392 by 2024.

This amounts to about a £1,000 difference this year and more than £1,500 over the next twelve months.

(Sources: investing.com, proactiveinvestors.co.uk)