UK final salary pensions hitting company investment: study

The financial burden of running final salary pension schemes is hampering companies’ ability to invest in expansion and development, according to UK research published on Tuesday. A survey of 226 chief executives and board members in companies carried out by UK business organization the CBI and insurer Standard Life (LSE:SL.) found more than two thirds reported the cost of so-called defined benefit pensions is stifling business investment. Defined benefit pensions pay out an income to scheme members on retirement amounting to a proportion of their final salary, depending on how long they paid into the scheme.


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