Directors of the UK’s top companies can retire on pensions of nearly £250,000 a year, an increase of more than 23% on last year, according to a survey published today.

The TUC’s seventh annual PensionsWatch survey, which analyses the pension arrangements of 373 directors from 103 of the UK’s top companies, shows that top bosses have amassed pension pots worth an average of £3.4 million, providing an average pension of £247,785 a year.

The highest-paid directors in each company have pension pots that would provide an average annual pension of £333,664, and a small number of directors can look forward to an annual pension of more than a million pounds a year.

TUC general secretary Brendan Barber said: “With more and more people having their company pension schemes reduced, the lavish arrangements enjoyed by the UK’s top bosses are nothing short of scandalous.”