Linking armed forces pensions to CPI inflation will cost some recipients hundreds of thousands of pounds, the Armed Forces Pension Society (AFPS) has warned.

In its June Budget, the coalition government announced that public sector pensions were to be linked to the lower Consumer Price Index (CPI) inflation, rather than the Retail Price Index (RPI).

The government has refused to make a special case for the armed forces pension scheme.

Pension changes to cost war widows - Defence Management