Final salary scheme pensions will be worth up to £24,000 a year more than money purchase payouts under the £1.4m savings limit.
The disparity – calculated by Mellon Human Resources & Investor Solutions – relates to the maximum benefit the Inland Revenue will allow DB and DC members to accrue under the proposed lifetime limit.
A DC scheme member retiring aged 55 with a 100% widow’s pension will receive a maximum pension – calculated using the usual factors which determine the open market cost of purchasing an annuity – of £46,000.
But the maximum pension for a DB member, using the proposed 20:1 ratio, is £70,000 a year – £24,000 higher.
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.