Directors’ pensions

The latest analysis of directors’ pensions published by the TUC shows that company directors tend to accrue pensions at a more generous rate than employees, and are likely to still be in final salary or defined benefit schemes. Those that are in defined contribution schemes receive company contributions that are well above average, with a typical contribution rate of around 20%. The majority will be able to retire on a full pension at 60.

The CBI employers’ organisation responded by saying that “taxing high fliers out of existence would harm the UK’s economy at no benefit to ordinary workers”. The TUC meanwhile wants directors and employees to be members of the same schemes, on the same terms.