Top business leaders can expect to retire on pensions of more than £500,000 a year, with the highest earners reaching nearly £1m.

The conclusion of research due for release this week will reinforce the warning issued a fortnight ago by the Association of British Insurers, that excessive pensions for directors were damaging the reputation of business when ordinary employees were having their benefits cut.

Many high profile UK companies are in the process of reducing pension benefits and/or increasing the retirement age.

The report, to be published in this week’s Labour Research magazine, shows that 112 directors of FTSE 100 firms will have pensions worth at least £200,000 a year, with 27 expecting one of £500,000 a year – a weekly income of £9,615.