No pay rise? Blame the baby boomers' gilded pension pots

Resolution Foundation study reveals overlooked link between firms limiting wage rises to plug pension liabilities of retired staff

Workers expecting Britain's economic recovery to fill out their pay packets are in for a nasty surprise.

While the UK's collective national income is expected to grow by more than 2% a year until at least 2020, the share distributed in wages is going to be less than many hope. As much as one percentage point could continue to be knocked off annual pay rises because firms need to plug holes in the pension pots of retired staff, according to a report.

Related: John Lewis group ditches final salary pension for staff contribution scheme

Related: Baby boomers v the rest: is age the great new divide?