Pensioners could lose nearly a third of their retirement pot under plans by politicians to save companies being crippled by growing pension costs, analysis for the Daily Telegraph has found.
Cuts to final salary-type pensions could become possible under measures being considered by MPs in the influential Work and Pensions Committee to make them more affordable for companies. Cash-strapped employers could reduce workers’ final salary-type pensions without first going through courts, which is currently not allowed.
More than 11 million workers have final salary pensions and could be affected by the possible overhaul, as pressure mounts on the Government to make them more sustainable.
It comes as the total funding “black hole” in UK final salary pension schemes has for the first time topped £1 trillion, prompting experts to conclude they are too costly to keep going in their current form.