Some two-thirds of companies offering final salary pension schemes to their employees are intending to cut their payments into the pot next year, actuaries Aon Consulting have discovered.
According to a survey by the group, only one in 15 private sector jobs being advertised to new staff will provide traditional final salary company pensions .
The research also found more than 70 per cent of pension schemes are in deficit, reducing employers' willingness to invest in them, the Telegraph has reported.
It blames rising inflation, higher taxation and falling returns from investment for the potential reductions in pensions contributions from companies.
John Ball, head of UK defined benefit consulting at Watson Wyatt, said: "In 2004, the Pensions Commission thought the decline in defined benefit provision might never get this bad. In fact, it has already got worse."
In July he commented many firms have abandoned this type of scheme because of high costs and the unpredictable performance of such funds .
Mr Ball added that companies are now more worried about having to look after previous employees who were given generous pension benefits.
Pensions contributions to be cut
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