Final salary guarantees 'more harmful than Brown's tax raid'

Speaking at the National Association of Pension Funds seminar, Yeo says the requirement for defined benefit (DB) pension schemes to provide pensions that are guaranteed to increase in line with inflation, do more harm to pensions than Brown's 1997 tax on pension fund dividends. He says: "In defined contribution schemes, people reaching retirement are able to choose whether to use their pension pot to buy a pension that increases in line with inflation, or a higher pension that remains level for life. The vast majority opt for the level pension because the cost of providing pension increase...